25 Sep

Expanded Eligibility for Insured Mortgages

General

Posted by: Craig Barton

The federal government on September 24, 2024 announced expanded parameters for lenders and insurers to begin offering insured mortgages effective December 15, 2024. The expanded parameters include:

  1. Expanding the eligibility for 30-year amortizations.
  2. Increasing the $1 million cap to $1.5 million.

To qualify for the 30-year amortization:

  • the loan to value must be 80% or more; and
  • the borrower must be a first-time homebuyer or purchaser of a new build.

To be considered a first-time homebuyer, a borrower must meet one of the following criteria:

  • The borrower has never purchased a home before.
  • In the last four years, the borrower has not occupied a home as a principal place of residence that either they themselves or their current spouse or common-law partner owned.
  • The borrower recently experienced the breakdown of a marriage or common-law partnership.
  • To be considered a newly constructed home, the new home must not have been previously occupied for residential purposes.

To qualify for the increased $.1.5 million cap price:

  • the loan to value must be 80% or more;
  • the value of the eligible residential property against which the loan is secured must be less than $1.5 million; and
  • the downpayment must be:
    • 5 per cent on the portion of a purchase price up to $500,000, and
    • 10 per cent on the portion of a purchase price between $500,000 and $1.5 million.
17 Sep

New Mortgage Rules

General

Posted by: Craig Barton

Big News for Homebuyers in Canada!
Inflation has dropped to 2.0%! This could mean lower mortgage rates are on the way!
New Mortgage Rules: The government is introducing 30-year mortgages for first-time buyers and increasing the price cap for insured mortgages to $1.5M. More flexibility for homebuyers!
U.S. Retail Sales Update: Strong numbers could affect tomorrow’s Fed rate cut decision. Will it be 50 or 25 bps?
Housing Starts: Canada’s new builds have slowed down. Could this stabilize home prices?
Let’s talk about how these changes might affect your mortgage plan!