This article was translated from content from CTV News.
According to Mary Sialtsis, first-time home buyers will benefit the most from one of the biggest rule changes, namely the extension of the amortization period, which will go from a limit of 25 years to 30 years for new construction and resale homes.
“This can really help buyers get into the market because if you spread the payment over a 30-year amortization, the monthly payment will be lower, but for those who need it, it will actually increase their purchasing budget and it can help someone get into their first home,” Sialtsis said in an interview with CTV Your MorningFriday.
This change will come into effect on Sunday.
Refinancing secondary housing is another major change, she added. Starting January 15, the government will allow people to refinance their home for up to $2 million to obtain the funds needed to build an additional home on the same property.
“Eligibility for this measure is restricted,” she said. “The change only applies to people who already own their home, allowing them to draw on their existing capital to borrow money,” she said. Other conditions are included in a federal government press release issued in October.
Ms. Sialtsis believes these changes open doors to more buyers, who she advises to speak to mortgage professionals to get a better idea of their financial situation. “First and foremost, check your numbers,” she says.
“Moving from 25 to 30 years of amortization can mean the difference between staying in rental housing and becoming a homeowner.”
– Mary Sialtsis, real estate broker
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While these changes may help more Canadians qualify for a mortgage, some of these measures mean they will pay much more over time.
The latest available data on homeownership in Canada suggests that, even with the new measures, the dream remains distant for many people, particularly in big cities. Data released last month indicates that the salary needed to buy a home is falling, but is still well above $100,000 in many cities.
