Real estate is the language we speak, we’re committed to keeping you informed about developments that could impact homeownership goals. An announcement has been made that could benefit first-time homebuyers looking to enter the market, especially those considering new builds. Important Mortgage Updates for First-Time Homebuyers:
Extended Amortization Periods for New Builds
Starting August 1, the government will implement a new policy allowing first-time homebuyers who need mortgage insurance (typically those making a down payment of less than 20% of the home’s purchase price) to opt for a 30-year amortization period, but only if they are purchasing a newly built home. This is a change from the current maximum of 25 years. This extension aims to make monthly mortgage payments more affordable, thereby helping more young Canadians to purchase their first home.
Why This Matters for East Toronto Buyers
While the new rule specifically targets newly built homes and does not apply to existing properties, it represents a crucial development for prospective buyers in East Toronto. Our region continues to expand with new developments, and this change could open up opportunities for first-time buyers who are interested in these new constructions.
Increased RRSP Withdrawal Limits
Additionally, the government has increased the limit for how much first-time homebuyers can withdraw from their Registered Retirement Savings Plans (RRSPs) to assist with down payments. The new limit is $60,000, up from the previous $35,000. This adjustment provides further support for buyers struggling to save for a down payment in today’s market conditions.
Permanent Mortgage Relief for Existing Borrowers
For homeowners facing pressure from rising interest rates, the government has introduced an option to permanently extend amortization periods under specific eligibility criteria. This change is designed to help homeowners reduce their monthly payments to more manageable levels.
What Does This Mean for You?
If you are considering buying a home, these changes could significantly affect your purchasing power and financing options. For those looking at new builds, the extended amortization period could make a big difference in your monthly budgeting. The increased RRSP withdrawal limit also provides a greater buffer to support your initial investment.
We understand navigating the real estate market and understanding mortgage options can be complex. We’re here to help you understand how changes impact you and assist you in making the best decision.
Stay Updated with Us
We will continue to monitor these changes and any further updates as they become available. Our commitment is to provide you with the most current and relevant information to help you make informed decisions.
