The federal government released details of its mortgage reform plan on Tuesday, outlining changes to eligibility for smaller down payments and extended amortization periods.
The Department of Finance said two key changes would be implemented by Dec. 15, 2024:
- Increasing the existing $1 million price cap for insured mortgages to $1.5 million
- Expanding eligibility for 30-year mortgage amortizations to first-time buyers and buyers of new builds
This means more home buyers are eligible for lower down payments and extended loan repayment periods.
It’s a move that would lower the barrier to entry into the housing market and drop monthly payments — but also one that would increase the overall cost of repaying a mortgage for those taking advantage of the relaxed requirements.
Here’s how the numbers break down:
New down payment cap
Previously, anyone purchasing a home for more than $1 million was required to front a minimum 20 per cent …