Canada recently announced changes to mortgage rules aimed at improving housing affordability. Key adjustments include increasing the insured mortgage cap from $1 million to $1.5 million, which allows buyers to qualify for a mortgage with as little as 5% down payment on homes up to that new limit. Additionally, the government has expanded the availability of 30-year amortization periods for all first-time homebuyers, as well as for those purchasing newly-built homes. This move could reduce monthly payments, offering greater flexibility to buyers in competitive housing markets
These reforms, set to take effect in December 2024, are part of broader efforts to address Canada's housing crisis, which has been a growing concern for many Canadians, especially younger buyers. However, some experts have raised concerns that these changes might lead to increased demand, potentially driving up home prices further
