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30 YEAR AMORTIZATIONS FOR ALL FIRST-TIME HOME BUYERS

The government is making adjustments to broaden Canadians' access to expensive housing markets. Two new measures have been introduced: increasing insured mortgage limits and providing access to 30-year amortizations for all first-time homebuyers.

The government's recent initiatives aim to address the challenges faced by Canadians in accessing the increasingly expensive housing markets across the country.


Starting December 15, 2024, the government will raise the insured mortgage cap to $1.5 million, enabling buyers to purchase more expensive homes with a down payment ranging from 5% to 19.99%. Instead of the previous minimum of 20% for the million-dollar threshold.


Down Payment Savings on Assumed Changes:

  • Currently 1.5 million dollar home needs a 20% Down payment = $300,000 

  • Expected Change is 5% first $500,000 + 10% on remainder = $125,000

This results in a $175,000 savings or decrease for first-time buyers entering the detached housing market




Furthermore, the government has announced the expansion of access to 30-year amortizations for all first-time homebuyers, aiming to lower their monthly payments. Assuming a $500 mortgage at 5% with a five-year term with taking a 30-year amortization you can lower your monthly payment by $239.57 a month as seen below.

Depending on the person this may encourage you to purchase your first home due to lower monthly costs but something we want our clients to realize is that in the longer term, you will have paid less down for your mortgage. Based on the example after five years you will have $16,271.02 less paid down compared to taking a 25-year amortization. Not sure which amortization length is right for you? Consult with a Browne Mortgage Team expert to assist you in making the right decision for your needs.



These new changes will highly benefit people new to homeownership especially younger generations. This will cause a boom in the market with more sellers and buyers in the $ 1 million and $1.5 million range by around 120%. However, this upsurge may have a downside, as historically, such frenzied market activity tends to drive home prices upwards due to heightened competition and a sense of urgency prevailing in the housing sector.


Considering the complexity and uniqueness of each individual's mortgage requirements, it is essential to seek advice from professionals. By consulting with our expert team at Browne Mortgage, you can gain valuable insights into the diverse options available in the market. This approach will help you make well-informed decisions that not only align with your financial goals but also maximize your savings. Call us today to see how we can help you with your mortgage financing.


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