The Federal Government has just announced major updates to mortgage default insurance eligibility, effective December 15th! This is great news for first-time homebuyers, especially those with less than 20% down.

Here’s what’s changing:

Price Cap for Insured Mortgages Increased to $1.5M
For the first time since 2012, the maximum purchase price for insured mortgages has been raised from $1M to $1.5M. This means a $1.5M home will now require only a $125K down payment (8.33%), compared to the current $300K. Perfect for urban buyers dealing with rising prices!

Amortization Extended to 30 Years
Buyers can now spread their mortgage over 30 years, boosting buying power by around $50K more in Ontario. Plus, monthly payments will be lower—if you have a $400K mortgage, your payments could drop by nearly 9%, saving you almost $200 every month.

These updates are being called the most significant mortgage reforms in decades, with first-time buyers making up 43% of 2023 sales. Expect a positive impact on the market!

Bonus: Fixed mortgage rates are dropping across all terms, making this the perfect time to review your options.

Need help navigating these changes? I offer a no-cost, no-commitment review of your rate offer or strategy. Reach out and let’s get you on the right track!