Recent mortgage rule changes and what they mean for you

There have been a few structural changes to Canadian mortgage rules in the past couple of years, and they matter more than most of the headlines about them let on. Here's the plain version, and what it actually means if you're buying.

The insured mortgage cap

Homes priced up to $1.5 million can now qualify for an insured mortgage with less than 20 percent down, up from the old $1 million cap. In practice, this means minimum down payment is 5 percent on the first $500,000 and 10 percent on the portion between $500,000 and $1.5 million. Above $1.5 million, you still need at least 20 percent down and the mortgage becomes conventional, uninsured.

30-year amortizations

Effective December 15, 2024, First-time buyers can now access a 30-year amortization on an eligible insured mortgage, whether it's a resale or a new build, rather than being limited to 25 years. A longer amortization lowers your monthly payment, in exchange for paying more interest over the life of the mortgage, so it's worth understanding as a trade-off, not just a benefit.

The GST/HST rebate on new builds

There's now a rebate program for eligible first-time buyers purchasing a new build, worth up to $50,000, administered through the CRA rather than through your mortgage itself. Eligibility rules are specific, so this is worth confirming directly rather than assuming it applies to any new construction purchase.

Why this is worth a real conversation

These changes can genuinely shift what's realistic for a first-time buyer, but they interact with each other and with your specific numbers in ways that are easy to misjudge from a headline alone. Reach out through karalenius.ca and we'll figure out exactly how these apply to your situation.