Every Canadian deserves to be able to rent or buy their home. To help more Canadians, especially younger generations, access a home that suits their needs, we are delivering significant new measures that reflect the realities of the current housing market.
Today in Toronto, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, highlighted how the government's bold mortgage reforms will make it more affordable to buy a home and unlock the dream of homeownership for more Canadians.
To make it easier for homeowners to add secondary suites, such as basement rental apartments, in-law suites, and laneway homes, the federal government is reforming mortgage insurance rules to allow refinancing to help cover the costs of building secondary suites. Starting January 15, 2025, homeowners will be able to refinance their insured mortgages to access the equity in their homes and help pay for the construction of a secondary suite. This will add much needed gentle density to our neighborhoods and help tackle the housing shortage.
To make it easier to buy a home with a smaller downpayment, the federal government is increasing the $1 million price cap for insured mortgages to $1.5 million, effective December 15, 2024. This means that more Canadians will be able to qualify for a mortgage with a downpayment below 20 per cent, making it possible for more Canadians to get those first keys of their own.
To lower monthly mortgage payments, the federal government is expanding 30 year amortizations to all first-time homebuyers and to all buyers of new builds, effective December 15, 2024. By offering lower monthly mortgage payments to all first-time buyers and buyers of new builds, more Canadians, especially younger generations, will be able to buy a home.
These mortgage reform measures build on the strengthened Canadian Mortgage Charter¸ announced in Budget 2024, which allows insured mortgage holders to switch lenders at renewal without being subject to another mortgage stress test. Soon, all homeowners with mortgages renewing will be able to shop around for the best rate. And for first-time buyers getting 30 year mortgages this December, you'll be able to find the lowest rate every time you renew.
The federal government has the most ambitious housing plan in Canadian history-a plan to build 4 million new homes. This is about building a country where every generation can reach the dream of homeownership.
