Originally announced September 24, 2024; effective December 15, 2024.
Canada introduced important insured-mortgage changes that affect some home buyers and mortgage calculations. The federal mortgage reforms increased the insured-mortgage price cap from $1 million to $1.5 million and expanded access to 30-year amortizations for all first-time home buyers and all purchasers of new builds.
What changed
- The insured-mortgage price cap increased to $1.5 million for eligible high loan-to-value mortgages.
- 30-year amortizations became available to all first-time home buyers and buyers of newly constructed homes, subject to the applicable eligibility rules.
- The measures apply to mortgage-insurance applications submitted to mortgage insurers on or after December 15, 2024.
How the changes affect calculations
A longer amortization can lower the required monthly payment, but it generally increases the total interest paid over the life of the mortgage. A higher purchase-price cap may allow some buyers to qualify for insured financing, but the down payment, debt-service ratios, mortgage rate, and lender approval still matter.
Use the Canadian mortgage calculator to compare payment amounts and total interest. If you are estimating the maximum home price you may qualify for, use the mortgage affordability calculator.
Important limitations
These changes do not guarantee mortgage approval. Eligibility, down-payment requirements, property type, debt-service calculations, mortgage insurance, lender policies, and the rate offered to a borrower can affect the final result.
For the official announcement and full conditions, see Finance Canada’s mortgage-reform backgrounder.