The Ministry of Finance recently amended the Insurable Housing Loan Regulations and the Eligible Mortgage Loan Regulations. This contains key changes aimed at making homeownership more accessible, particularly first-time homebuyers and addressing housing affordability. These amendments also provide more flexible mortgage options and are adjusted to current market realities. Here's a summary of the key points:
- 30-Year Amortization for First-Time Homebuyers:
- The regulations expand eligibility for 30-year mortgage amortizations for insured mortgages.
- This is primarily targeted at first-time homebuyers purchasing newly built homes.
- There have been changes to expand that 30-year amortization to all first-time home buyers.
- Eligibility Criteria:
- To qualify, at least one borrower must be a first-time homebuyer, with criteria defined to align with the Canada Revenue Agency's Home Buyers' Plan.
- The property must be a newly constructed home, with some allowances for interim occupancy periods in condominiums.
- These measures apply to high-ratio mortgages (loan amount exceeding 80% of the home price) on owner-occupied properties.
- Increased Home Price Limit:
- The regulations include an increase in the home price limit for high-ratio insured mortgages, raising it to $1.5 million.
- Down Payment Requirements:
- The down payment requirements are:
- 5% on the portion of a purchase price up to $500,000.
- 10% on the portion of a purchase price between $500,000 and $1.5 million.
- The down payment requirements are:
- Effective Dates:
- There are varied effective dates for the changes, with some being retroactive, and others coming into effect in late 2024, and early 2025.
For more information, and full view of the amended regulations, please click here.