Expanded Access for Homebuyers

Starting December 15, new federal mortgage rules allow first-time buyers 30-year amortizations and raise the insured mortgage cap from $1 million to $1.5 million. Homeowners can also switch lenders at renewal without a stress test, making mortgages more accessible.

Positive Industry Response

The Canadian Real Estate Association (CREA) supports these changes, which aim to boost homeownership for first-time buyers, especially in high-cost areas. The Canadian Home Builders’ Association (CHBA) and Toronto Regional Real Estate Board (TRREB) expect these reforms to stimulate housing construction and ease housing shortages.

Focus on Flexibility and Affordability

The Canadian Mortgage Brokers Association (CMBA) praises the higher mortgage price cap, offering more flexibility with down payments. TRREB and CMBA have also advocated for easier lender-switching to foster competitive rates for homeowners.

Addressing the Housing Supply Challenge

CHBA CEO Kevin Lee emphasizes that expanding mortgage eligibility is crucial to meeting housing demand. CREA and CHBA agree that easing mortgage access helps tackle Canada’s housing shortage by encouraging construction and supporting future buyers.