Big Mortgage Changes in Canada – Here’s What You Need to Know!
Hey there, mortgage friends! Here at Lendlab Mortgage Inc. in Nanaimo, we’re always keeping our ear to the ground for changes that might make home ownership a bit easier for you. And right now, there are some big updates on the Canadian mortgage scene you should know about—especially if you’re thinking of buying, refinancing, or renewing soon.
The Canadian government recently rolled out some reforms aimed at making home ownership a little more affordable and a lot less stressful. Here’s the lowdown:
1. Stress Test Exemption for Lender Switching Starting November 21, if you want to switch lenders at renewal time, you’ll no longer need to go through the stress test—hooray! This change will make it much easier to find a lender with a better rate without having to prove you can handle payments at a much higher rate than your contract. This exemption applies to uninsured mortgages, making switching a more straightforward process for more homeowners.
2. Bigger Cap for Insured Mortgages Good news if you’re eyeing properties over $1 million: as of December 15, 2024, the insured mortgage cap is increasing from $1 million to $1.5 million. This is the first update in over a decade, finally matching today’s housing prices and giving more people a shot at home ownership with less than 20% down.
3. 30-Year Amortization for First-Time Buyers & New Builds Another December 15, 2024, update that’s worth noting: first-time buyers and those buying new builds can now opt for a 30-year amortization on insured mortgages. That’s five more years to spread out payments and lighten your monthly load. It’s a nice little break for first-timers and could also help encourage more new builds, which we all know are much needed in today’s tight market.
These changes follow some earlier 2024 updates, including:
- Higher RRSP Home Buyer’s Plan Limit – Now you can use up to $60,000 from your RRSP for your home purchase (up from $35,000).
- Permanent Amortization Relief – Long-term help for anyone feeling the pinch from rising mortgage payments.
We’re here to help you figure out how these changes could make your path to home ownership a little smoother. So, if you’re considering a move, renewal, or just want to talk through your options, let’s chat! Reach out anytime for a stress free, no-pressure consultation.
