Canada’s new mortgage rules, which came into effect on December 15, 2024, include:
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Increased insured mortgage price capThe price cap for insured mortgages increased from $1 million to $1.5 million. This allows buyers to qualify for smaller down payments in more expensive markets.
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30-year amortizations for first-time buyers and new buildsThis change extends the mortgage term from 25 years to 30 years, which can help make monthly payments more manageable.
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Refinancing options for homeownersHomeowners with insured mortgages can refinance up to $2 million to build additional dwelling units, such as laneway homes.
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New definition of a newly constructed homeA newly constructed home must not have been previously occupied for residential purposes.
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Stress test changes for switching lendersHomeowners with an uninsured mortgage who are switching to a new lender and keeping the same amortization and loan amount won’t need to undergo a new stress test.
These changes are intended to help more Canadians, especially younger generations, get their first home.