Federal Mortgage Reforms Aim to Boost Homeownership and Tackle Housing Shortage
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The federal government announced significant changes to mortgage rules aimed at improving homeownership accessibility. Starting December 15, first-time buyers and those purchasing newly constructed homes will have access to 30-year amortizations. Additionally, the insured mortgage limit will increase from $1 million to $1.5 million, reflecting rising housing prices. The changes also allow homeowners to switch mortgage lenders at renewal without undergoing a new stress test.
Industry organizations, including the Canadian Real Estate Association (CREA) and the Canadian Home Builders' Association (CHBA), have expressed strong support for these reforms. They highlight how the new measures will benefit first-time buyers, particularly in high-cost markets like Toronto and Vancouver. The changes are expected to boost housing construction and make homeownership more attainable for a broader range of Canadians.
Alongside the mortgage reforms, the government also introduced blueprints for a Home Buyers' Bill of Rights and a Renters’ Bill of Rights. While some are concerned about the potential inflationary impact of increased mortgage access, the CHBA argues that addressing the housing supply shortage is a more pressing issue. Overall, the real estate industry views the reforms as a step toward balancing supply and demand in Canada's housing market.
Read the full article on: REAL ESTATE MAGAZINE
