Canada's housing market will see some major changes to mortgage rules that might make owning a home more realistic for Canadians, especially first-time buyers.

First, first-time homebuyers who are purchasing newly built homes or condos can now qualify for a 30-year mortgage. This means allowing lower monthly mortgage payments over a longer period of time, offering short-term relief for many young Canadians who are just starting their careers.

Second, the government has announced it's raising the price cap for insured mortgages to $1.5 million. This move aims to help people in more expensive markets like Vancouver and Toronto, where home prices have skyrocketed in recent years. It means buyers could qualify for a mortgage with less than a 20% down payment on homes priced up to $1.5 million, as opposed to the current $1 million cap.

Lastly, the national banking regulator says it will no longer require borrowers with uninsured mortgages to undergo a stress test when switching providers. This is great news. The Office of the Superintendent of Financial Institutions says it will end the policy for lenders to apply the minimum qualifying rate to straight switches when uninsured mortgages are renewed at a different institution under the borrower's current amortization schedule and loan amount. This change took effect on November 21, 2024.

The next bank of Canada interest rate announcement is January 29,2025. Expect another 25 basis point reduction which should help many buyers with their affordability numbers. 

It is so important that you work with a seasoned Mortgage Broker. According to a recent survey by Mortgage Professionals Canada, most homebuyers risk leaving money on the table by failing to research their options.

Fortunately, my Team Mortgage Broker can explain your options, answer your questions, and help you find the best loan to meet your needs. We can also develop a custom plan for securing a great home that fits your budget. Reach out when you're ready to get started.