[BREAKING NEWS] Important Mortgage Affordability Changes (hint: they're WAY better)
Stuart Lessels
September 17, 2024
It's never going to earn me the Order of Canada but one of the things that I do to serve you - every day - is keep my watchful eye open for any mortgage or real estate news that affects you! ….this one is HUGE!!!!
On Sept 16 the Canadian government has just announced some of the boldest mortgage reforms in decades, aiming to make homeownership more accessible for Canadians12. Here’s a quick rundown of what’s new and why it matters to you.
Big Changes in Mortgage Rules
Starting December 15, 2024, first-time homebuyers and those purchasing new builds can now opt for a 30-year mortgage loan. This means lower monthly payments, making it easier for more people to afford a home. Plus, the price cap for insured mortgages has been raised to $1.5 million from $1 million. This means you can now purchase a home for up to $1.5 million, with a down payment between 5% and 20%! This is great news for those in high-priced markets like Toronto and Vancouver, and more.
What Does This Mean for You?
For realtors and those looking to purchase, this could be a game-changer. More people will be able to qualify for mortgages, especially those who previously found it challenging, and that could lead to a busier housing market.
If you are purchasing a home, you will have more options and flexibility. You will have the ability to own a home in markets where previously you could not.
And for investors, these changes might just be the push needed to dive into new projects.
Why It’s a Big Deal
These reforms are designed to help younger Canadians and first-time buyers get their foot in the door of the housing market. With the cost of living and housing prices on the rise, these changes could make a significant difference. It’s all about making homeownership a reality for more people.
Is There a Catch?
There is no catch, this is really good news. However, a word of caution: with a 30-year mortgage, the total amount of money you pay in interest increases, and the first five years of your mortgage are mostly paying interest. We also have to ensure you still qualify for the total mortgage amount.
Is paying more overall interest fees what any of us want? No, of course not. However, this will let more people be able to own a home with lower down payments and lower monthly payments than they had before.
A Little Cheeky Insight
Now, I know what you’re thinking – “Stuart, how does this help me?” Well, as your “Go To” Mortgage Broker, I’m here to navigate these new waters with you. Whether you’re a realtor looking to help your clients, a homebuyer ready to take the plunge, or an investor eyeing new opportunities, I’ve got your back.
More Details?
If you have any questions or need help understanding how these changes affect you, don’t hesitate to reach out. Let’s make the most of these new opportunities together!
For more details, check out the full announcement here.
Cheers,
Stuart Lessels
Your “Go To” Mortgage Broker for Georgian Bay and beyond
(705) 445-1234