Are Mortgage Rules Changing Weekly? Here’s What You Need to Know!

In this video, we’ll break down the latest mortgage rule changes and how they may affect you.

Key Updates:

No More Stress Tests for Insured Mortgage Renewals:
Now, you don’t need to qualify at a higher rate when renewing a non-insured mortgage, giving you more options to negotiate with lenders.

Return of 30-Year Amortization for Insured Mortgages:
Available for first-time homebuyers and new construction purchases, this lowers payments or allows you to qualify for a bigger mortgage.

Less Than 10% Needed to Purchase a Home up to $1.5M:
Starting December 15, 2024, you’ll need 5% down for the first $500K and 10% for the remaining, equating to an 8.3% total down payment. Though helpful, it may drive up home prices.

90% LTV Refinance for Secondary Suites:
Beginning January 15, 2025, homeowners can refinance up to 90% of their home’s value to build secondary suites. These units must be long-term rentals, and the previous LTV cap was 80%.

How These Changes Impact You:
The removal of the stress test allows for more competitive mortgage options, while the return of 30-year amortizations could ease your monthly payments. The higher $1.5M purchase cap makes homeownership more accessible, but it could also drive prices higher in an already expensive market. The 90% LTV refinance program supports adding secondary suites, but high renovation costs could limit its appeal.

What to Expect:
With dropping interest rates and record-breaking immigration numbers, the housing market may see significant growth over the next few years. Although many of these changes offer benefits, they may also fuel an already heated market.

SOURCES:
https://globalnews.ca/news/10776156/mortgage-stress-test-renewal-dropped-osfi

https://globalnews.ca/news/10757723/ottawa-to-expand-30-year-amortizations-raise-insured-mortgage-cap

https://www.canadianrealestatemagazine.ca/news/canada-mortgage-reforms-announced-09-2024

https://www.canadianmortgagetrends.com/2024/10/feds-launch-mortgage-refinancing-program-to-boost-secondary-suites-and-ease-housing-crunch

https://www.google.com/url?q=https://immigration.ca/canada-immigration-numbers-for-2024-matching-last-years-record/&sa=D&source=docs&ust=1729652094016710&usg=AOvVaw34eHBRhOrah92MtQ8uyuk2

Stay tuned for more updates and feel free to drop your questions in the comments!