Here is an Instagram & Facebook post I just did to recap the major changes we’ve seen since October 11, 2024 and the new one coming out on January 15, 2025:
With (former) Minister of Finance Chrystia Freeland’s sudden resignation today, we’re here to help you navigate the recent Canadian mortgage rules and what they mean for you.
Since October 11th, we’ve seen three major rule changes, with one more significant update coming in January. The government’s goal? To help more Canadians afford homes and encourage faster home construction.
Here’s what’s happened so far:
- October 11, 2024: First-time homebuyers purchasing new construction homes can now access 30-year amortizations to make monthly payments more manageable.
- November 21, 2024: The Office of the Superintendent of Financial Institutions (OSFI) removed the stress test requirement for switching your conventional uninsured mortgage to a new lender—provided there are no changes to the loan amount or amortization period. However, not all lenders may adopt this change immediately or without conditions.
- December 15, 2024: The insured mortgage cap increased from $1 million to $1.5 million, and 30-year amortizations were extended to all first-time homebuyers and purchasers of eligible new builds.
Coming up:
4. January 15, 2025: A new refinancing rule will allow homeowners to refinance their insured mortgages to access equity for constructing secondary suites, enhancing housing options and affordability.
And let’s not forget about the new Anti-Money Laundering (AML) and Politically Exposed Persons (PEP) rules that also came into effect on October 11th. More to come on this soon.
If you’ve been looking for ways to enter the real estate market or refinance your home, these changes could open up new opportunities. Want to explore how you can leverage these updates to your advantage? Reach out anytime!