Tell us there's an election looming without telling us there's an election looming...
The Government has been rolling out all the stops the last few weeks, with some major announcements in an effort to supposedly boost homeowner affordability.
Key dates:
November 21st, 2024:
No stress test for uninsured mortgage renewals when switching lenders.
Insured borrowers have enjoyed this luxury since Oct 2023. Hopefully, the Government will amend these changes to allow no stress test on insurable mortgage renewals as well.
December 15th, 2024:
30-year mortgage amortizations will expand to all first-time home buyers and anyone purchasing new construction.
The price cap on insured mortgages will increase from $1 million to $1.5 million.
The min. down payment will be 5% on the portion of a purchase price up to $500k.
And 10% on the portion of a purchase price between $500k and $1.5 million. This translates to needing $125k to buy a home for $1.5 million, instead of $300k previously.
January 15th, 2025
Homeowners will have the opportunity to refinance their insured mortgages to finance the construction of secondary suites. Key details include:
Access to Equity: Homeowners can access up to 90% of their home’s value, including the value added by the new secondary suite(s).
Longer Amortization Period: The refinanced mortgage can be amortized up to 30 years.
Increased Price Limit: The mortgage insurance home price limit will increase to $2 million for those refinancing to build a secondary suite, ensuring broader access across various housing markets. Up to 4 units can be built.
Let’s chat about how these changes can positively impact your financial future—reach out today and call us at 514-994-1030.