With the ever changing trends in the Canadian Market, great news for home buyers comes over the horizon to level things out and effective this December 15 2024 houses up to $1.5 Million will qualify for mortgage insurance, moving the notch from a $1.0 Million Cap. This means that you could buy a property up to $1.5 Million with less than 20% down payment and this is great news for the ones saving up to buy properties in cities like Vancouver or Toronto, where Detach and Semis usually start in the $1 Million, this new measure will be more on par to what current prices are and will allow more buyers to acquire their new homes faster than expected.
At the present time we don't know the premium insurance costs associated with this new incentive, therefore we should remain vigilant on what those cost will weight in your mortgage in the long run, but many will find this new incentive as the leverage they so needed and will jump into the market, possibly creating competition among buyers and hence heating the market, for this reason if you are considering buying your new home , you should avoid the competition by entering the market now.
More over, as the inflation recedes and the economy bounces back, In Budget 2024, the federal government announced it would amend mortgage rules to allow up to 30 year mortgages for first-time home buyers purchasing new builds and more recently on august 1st this mortgage extension will apply to first time buyer as well .
Borrowers that satisfy the following requirements will be eligible for up to 30 year mortgage amortizations:
- First-Time Homebuyer: At least one of the borrowers on an application must be a first-time homebuyer. To be considered a first-time homebuyer, a borrower must meet one of the following criteria:
- The borrower has never purchased a home before;
- In the last 4 years, the borrower has not occupied a home as a principal place of residence that either they themselves or their current spouse or common-law partner owned; or,
- The borrower recently experienced the breakdown of a marriage or common-law partnership. On this point, the regulations will follow the approach that the Canada Revenue Agency has taken with respect to the Home Buyers’ Plan.
- Newly Constructed Home: The property that the borrower is purchasing must be a newly constructed home. To be considered a newly constructed home, the new home must not have been previously occupied for residential purposes. This requirement is not intended to exclude newly constructed condominiums where there has been an interim occupancy period.
- Effective Date: This measure will be available for mortgage insurance applications that lenders submit to mortgage insurers on or after August 1, 2024. The government expects lenders will begin offering 30 year mortgages to eligible first time buyers as soon as August 1.
All these incentives will definitely move many buyers from the side lines to be more active and if the housing development continues to be less than the growing population rate then i could hurt the already soared market even more , for this reason there is a fine line that has to be adjusted . A slow and un affordable market not only hurts Buyers and Sellers, but also Developers who cannot get the necessary funding in form of buyers and investors to get their projects running .
Many speculate if this will bring back a more affordable market or will this worsen it , My advice to you is focus on the bright side of it and that the government has approved many incentives and home buyers plans, to make your dream come true. In order to start moving up the housing ladder, you have to take a step forward, i offer you my services to guide you through the housing market , providing tailored services to your needs and not by gambling your future, please feel free to contact me though this or my media channels online. i will gladly assist you from beginning to end.
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