Canada’s housing market has been struggling with affordability for years. In response, the federal government has introduced key mortgage rule changes. But will they make a difference? 
Extended Amortizations & Higher Insured Mortgage Cap
One major update is the extension of amortization periods to 30-years for First-Time Homebuyers, purchasing new-build homes. This longer repayment term reduces monthly payments, potentially making homeownership more accessible. For example, a 30-year amortization on a $1.3 million mortgage, could lower monthly payments by $400 to $600.
Additionally, the Insured mortgage cap has been raised to $1.5 million, allowing more buyers to access Insured mortgages, which often come with lower rates.
Stress Test Scrapped for Lender Switches
A significant win for homeowners is the removal of the stress test for uninsured borrowers switching lenders at renewal. Previously, borrowers had to requalify at the higher stress test rate, limiting their ability to find better mortgage deals. Now, Canadians can shop for the best rates without being penalized.
Will these Changes Solve the Affordability Crisis?
While these updates offer some relief, experts argue they don’t address the core issue: a lack of housing supply. With home construction facing economic uncertainty, affordability challenges may persist despite these changes.
If you are in the process of purchasing a home, don’t delay, contact us to get the best mortgage option for you.
