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NEW 30 Year Amortization Option for First Time Home Buyers



The Federal Government has come forward with new housing policies, aimed at helping First Time Home Buyer’s, amid a challenging market of high interest rates and home prices, coupled with increased competition due to lower than normal inventory and recent immigration surges.


So...What's the Scoop? What's Changing?


  1. Starting August 1, 2024, first-time home buyers who purchase a newly-built home, with less than 20% down (default insured mortgages) can extend their loan repayment period from the standard 25 years to 30 years. The catch? This is primarily for New Construction Mortgages, not previously lived in homes.

  2. First Time Home Buyer's will soon also be able to withdrawal up to $60,000 from their RRSP, under the (FTHB Plan) - an increase of $25,000, from the previous maximum of $35,000. 


What has driven these policy changes?


It is no secret that housing affordability has been a struggle for the last couple years, which has proven to make it very difficult for first time buyers to penetrate the housing market. By extending the amortization of a mortgage loan, it helps in a couple different ways:

  1. A 30-year mortgage length can help your mortgage application, by lowering the income needed to qualify for a certain mortgage amount.

  2. Relatively speaking, the longer your amortization, the lower your regular mortgage payment. ** Keep in mind, with a longer amortization, more interest will be paid over the life of your mortgage — So the question becomes, do you value monthly cash flow savings for the short term? Or do you more-so value long term interest savings, over the 30 year amortization of your mortgage?


Wondering if you would qualify?


Firstly - To qualify for this new 30 year program, you will also have to qualify under the First-Time Home Buyer program, as per government requirements:

  • A Canadian resident.

  • A Canadian resident At least 18 years old (or 19, depending on your province)

  • You have not owned or jointly owned a qualifying home during the present calendar year, or the preceeding 4 calendar years. 

  • You must intend to occupy the home as your primary residence within one year of purchase.


Secondly - ’Qualifying homes' under this new government program are newly built homes, not previously built or lived in homes.


Competitive rate's help too!


While Canadian Government is rolling out new policies to hopefully making buyer your first home a little more affordable, another way to ensure you are keeping your mortgage payments at a minimum, is to ensure you are getting a competitive rate!


Mortgage Intelligence works with over 50 Lending Insitutions, including most major banks, credit unions, trust companies and other national lenders. We are committed to finding you the best financial rates and solutions for your financial situation, with a rate conscious mindset and in a timely manner.


We would love to work with you!


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