On Sep. 16, CAN GVT reported on government mortgage reforms.
CAN GVT reported boldest mortgage reforms in decades to unlock homeownership.
Follows CAN GVT reported on housing measures in Budget 2024, see #215504.
High cost of mortgages is barrier to homeownership, especially for Millennials/Gen Z.
Released a suite of reforms to mortgage rules to make mortgages more affordable.
Insured Mortgage Price Cap
Increased $1mn price cap for insured mortgages to $1.5mn, effective Dec. 15, 2024.
Will help more Canadians qualify for a mortgage with a downpayment below 20%.
Amortization Eligiblity
Expanded eligibility for 30-year mortgage amortizations to all first-time homebuyers.
Also expands eligibility to all buyers of new builds, including measure to incentivize more new housing construction with aims to help tackle the housing shortage.
Builds on budget 2024 commitment permitting 30-year mortgage amortizations for first-time homebuyers purchasing new builds, including condos, see #221238.
Related Actions
Builds on Canadian Mortgage Charter announced in Budget 2024, which allows insured mortgage holders to switch lenders at renewal without another mortgage stress test.
Released blueprints for a Renters’ Bill of Rights and a Home Buyers’ Bill of Rights.
Blueprints will protect renters from unfair practices, make leases simpler, and increase price transparency to help make home buying process fairer and more transparent.
Effectiveness
Insured mortgage price cap increase to $1.5mn becomes effective Dec. 15, 2024.
Expanded eligibility for 30-year mortgage amortizations effective Dec. 15, 2024.
Sep. 24, 2024 CAN GVT Mortgage Reforms
On Sep. 24, 2024, CAN GVT issued mortgage reform details for lenders, insurers to ensure Canadians can access lower monthly mortgage payments by Dec. 15.
Actions build on Budget 2024 commitment, came into effect on Aug. 1, 2024, permits 30 year mortgage amortizations for first-time homebuyers purchasing new builds.
These measures are the most significant mortgage reforms in decades and part of the federal government’s plan to build 4mn to help Canadians become homeowners.
CAN GVT is investing $6bn through the Canada housing infrastructure fund to build and upgrade core infrastructure in communities, including drinking water.
Government started negotiations with provinces and territories on key actions they can take to increase housing supply, in exchange for their share of $5bn in federal funding.
Applications for the $1 billion municipal stream will open next month in Oct. 2024.
