Canada’s New Mortgage Rules: Expanding Home Ownership Opportunities for First-Time Buyers

October 29, 2024

Finance Minister Chrystia Freeland has announced significant updates to Canada’s mortgage rules, aimed at easing the path to homeownership for Canadians. Starting in December, the price cap for insured mortgages will increase to $1.5 million, allowing buyers with less than a 20% down payment to access higher-value homes. This is the first adjustment of the cap since 2012.

Additionally, the government will expand 30-year mortgage amortizations to all first-time buyers and anyone purchasing a new-build property. Initially limited to new builds, this change addresses affordability, supporting younger Canadians amid rising costs.

Justice Minister Arif Virani also outlined forthcoming bills focused on renters’ and buyers’ rights, including protections against renovictions and a push for transparent bidding processes. This reform package follows extensive public pressure to address housing affordability, with the government framing it as one of the boldest actions in decades.

With housing remaining a top concern for Canadians, these changes reflect efforts to adapt mortgage policies to a modern economy. The government anticipates releasing further economic updates soon, highlighting this as a critical focus for young Canadians aiming to enter the housing market.