Canada Unveils Major Mortgage Reforms to Boost Homeownership and Housing Supply

New measures include extended amortizations and increased price caps to make homebuying more accessible for young Canadians and stimulate new builds.

Finance Minister Chrystia Freeland announced the expansion of 30-year mortgage amortizations for all first-time buyers and purchasers of new builds.
The insured mortgage price cap will increase from $1 million to $1.5 million, effective December 15, 2024, to help more Canadians qualify for loans with lower down payments.
The reforms aim to alleviate housing affordability issues, particularly for Millennials and Gen Z, by reducing monthly mortgage costs.
The federal government’s broader housing plan includes building 4 million new homes and investing $6 billion in community infrastructure.
Additional measures include the Tax-Free First Home Savings Account and enhanced Home Buyers’ Plan to help Canadians save for down payments.