Overview

• 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.