Canadian Government Unveils Major Mortgage Reforms to Boost Homeownership

Date Posted: September 17, 2024

Finance Minister Chrystia Freeland announced changes to mortgage rules aimed at helping Canadians, particularly first-time homebuyers, purchase homes. Key changes include raising the price cap for insured mortgages from $1 million to $1.5 million, allowing more people to qualify with less than a 20% down payment. The government will also extend 30-year mortgage amortizations to all first-time buyers and those purchasing newly built homes.

Freeland argued the changes reflect economic growth and rejected concerns that they would further inflate housing prices. Justice Minister Arif Virani also introduced plans for a renters’ bill of rights and protections for homebuyers, including measures to curb unfair practices like renovictions and blind-bidding.

These reforms are being touted as the "boldest mortgage reforms in decades," following criticism over high housing costs and declining support for the Liberal government. Freeland also dismissed the idea of a home-equity tax on primary residences.

If you have questions about your own mortgage, and the best strategy for you, please contact your broker today.

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