New Mortgage Reforms Announced to Enhance Homeownership Access
On September 16, 2024, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, announced new mortgage reforms aimed at improving homeownership accessibility for Canadians. These reforms include:
- Increase in Insured Mortgage Cap: The price cap for insured mortgages will rise from $1 million to $1.5 million, effective December 15, 2024. This adjustment aims to help more Canadians qualify for mortgages with down payments below 20 percent.
- Extended Eligibility for 30-Year Amortizations: Starting December 15, 2024, all first-time homebuyers and buyers of new builds will be eligible for 30-year insured mortgage amortizations. This change is intended to lower monthly mortgage payments and encourage new housing construction.
These measures build on the Canadian Mortgage Charter introduced in Budget 2024, which allows insured mortgage holders to switch lenders at renewal without undergoing another mortgage stress test. The government plans to implement regulatory amendments for these proposals, with further details to be announced soon.
Additionally, the government has released blueprints for a Renters’ Bill of Rights and a Home Buyers’ Bill of Rights, aimed at protecting the rights of home buyers and renters. These initiatives are part of a broader strategy to address the housing crisis and increase the availability of affordable housing across Canada.