The federal government has announced changes to mortgage rules in Canada coming December 2024.
First, the government will allow 30 year amortization for ALL NEW BUILD BUYERS and also 30 year amortization for ALL first-time home buyers regardless if they buy resale or new construction.
This I think is the material change that younger buyers will take advantage of...they get now a comfortable payment and can later build in pre-payments to bring the amortization down on subsequent term renewals.
The second change is the government is increasing CMHC insured mortgages to $1.5 million from $1 million.
This will matter to people who are buying just over $1 million (especially if they are caught in a multiple offer), with the ability to get an insured mortgage rate.
It will be interesting to see how these changes may or may not change buying behavior over the next couple of months.