September brought two major developments that will positively impact Canadian housing activity.

Ottawa's Housing Affordability Measures

Under increasing pressure to make housing more affordable, Ottawa raised the home price cap for insured mortgages from $1 million to $1.5 million. This is the first increase since 2012!

Now, homebuyers can make a smaller down payment (10% instead of 20%) and enjoy a 30-year amortization, up from the previous 25-year option for non-insured mortgages.

For a $1.5 million home, the required down payment is now just $125,000 (8.33%)—a significant reduction from the previous $300,000. This change is set to benefit high-cost markets like Vancouver and Toronto, where average home prices exceed $1 million.

Federal Reserve’s 50 Basis Point Rate Cut

In a major move, the Federal Reserve made a 50 basis point rate cut, the first of its kind in this cycle! This opens the door for the Bank of Canada to follow suit with a larger rate cut in October or December. Lower rates will help stimulate the housing market, especially as we head into the spring season.

With mortgage rates falling and inflation easing, these measures are expected to boost housing demand across the country.

All signs point to a busy and active housing market, especially in cities like Toronto and Vancouver.

If you have any questions about how these changes impact your mortgage or future home purchase, feel free to reach out! I'm here to help guide you through these exciting developments.