Shopping for your dream home may get a little easier thanks to new proposed mortgage rules—and they’re packed with benefits for both first-time buyers and anyone ready to call a new build “home.” Here’s the scoop on what’s new and why it could make your 2024 home-buying experience a whole lot better.
📅 30-Year Amortization: More Time, Less Pressure
Goodbye, 25-year max! Now, both first-time buyers and anyone buying a newly built home can opt for a 30-year amortization period, lowering monthly payments by spreading them out a bit more. This change could mean less monthly stress and more room in your budget to start filling that new space with furniture you actually love (or, hey, a few takeout dinners to celebrate moving in!).
🏡 Higher Cap for CMHC-Insured Mortgages Means Less Down Payment in the $1M-$1.5M Range
The days of needing at least 20% down for homes over $1 million are gone! With the new cap for CMHC-insured mortgages raised to $1.5 million, you now have the option to buy within this price range with less than as little as 10% down payment.
This opens up a world of possibilities if you’re looking to buy in higher price ranges without needing to save up that massive down payment. In other words, that dream home in your favorite neighborhood might be within reach faster than you thought!
🏦 Interest Rate Drop: Bank of Canada Lowers Key Rate by 50 Basis Points
On October 23, the Bank of Canada cut its key lending rate by 50 basis points to 3.75%. And if lenders follow suit, that could mean lower mortgage rates for buyers! With monthly payments that might just feel a little lighter, this is a change that could make owning that dream home even more affordable.
So, How Do These Changes Help You?
These updates mean lower monthly payments, easier access to higher-priced homes, and a chance to take advantage of better interest rates. It’s like the mortgage world decided to throw buyers a little party—and it’s one worth RSVPing to!
Got questions or ready to start looking? We’d love to chat and walk you through what these updates mean for you personally. Let’s get those house keys in your hand!
