Oct. 01, 2024 | CREB
Government raises insured mortgage caps and extends amortization period to 30 years
In September, Finance Minister Chrystia Freeland announced changes to mortgage rules to increase homeownership opportunities for first-time buyers.
Effective December 15, 2024, the federal government will:
- Expand eligibility for 30-year mortgage amortization to all first-time home buyers, as well as to individuals buying a newly built house.
- Increase the price cap for insured mortgages from $1 million to $1.5 million, allowing more people to buy a house with a down payment below 20 per cent.
An amortization period of 30 years was originally limited to first-time home buyers buying newly built houses.
These changes are considered some of the most significant mortgage policy reforms in many years.
According to Freeland, they’ll incentivize more new housing construction, tackle the housing shortage, and help make homeownership more attainable for young Canadians.
The Canadian Real Estate Association (CREA) has welcomed these reforms, stating that they represent a significant step towards improving access to homeownership and making housing more attainable, something REALTORS® have advocated for and continue to stand behind.
But how will the new measures impact the real estate market in Calgary? According to Ann-Marie Lurie, CREB®’s Chief Economist, only time will tell.
“It’s really about how much more demand will improve and what that means for supply,” Lurie told the Calgary Herald.
“If the demand is strong enough, then you could see some of that uptick in price as well, especially if the supply doesn’t keep pace.”
Tagged: Government of Canada | Housing Market
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