Oct 5, 2017
The federal government today unveiled new measures aimed at improving access to housing for first-time buyers.
The announcement comes less than a week before the 2024 federal budget, as the government acknowledged the challenges young homebuyers face in saving a down payment for their purchase.
“Faced with a shortage of housing options and increasingly high rent and home prices, younger Canadians understandably feel like the deck is stacked against them. We are changing that,” Minister of Finance and Deputy Prime Minister Chrystia Freeland said in a release. “What we are announcing today will make a downpayment much more attainable for younger Canadians.”
The new measures consist of:
The increased maximum amortization limit for insured mortgages on new builds is a partial reversal of policy that took place in 2012, when the maximum amortization period for insured mortgages was reduced from 30 years to 25 years.
This change was implemented by the federal government in response to concerns about rising household debt levels and the potential risks associated with longer mortgage terms.
But in allowing longer amortization for select mortgages, borrowers can benefit from lower monthly payments and improved cash flow, particularly in the face of today’s high-interest rate environment.
Prospective homebuyers who want to know more about how they might be impacted by these measures are encouraged to reach out to a mortgage broker, who can provide personalized guidance tailored to their specific financial situation and housing goals.