Ottawa Unveils Major Mortgage Reforms to Tackle Housing Affordability
New rules extend 30-year amortizations and raise mortgage insurance cap to $1.5 million to help more Canadians enter the housing market.
- The federal government has introduced 30-year amortization periods for all first-time homebuyers and buyers of new builds.
- Mortgage insurance qualification has been expanded to cover homes costing up to $1.5 million, up from the previous $1 million cap.
- These changes aim to address Canada's housing shortage and affordability crisis by making it easier for younger buyers to purchase homes.
- While the measures could improve affordability, they may also lead to higher home prices due to increased demand.
- Banks and insurers may need to adjust their risk assessments as more high-value mortgages become eligible for government-backed insurance.
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