Canadians work hard to be able to afford a home. However, the high cost of mortgage payments are a barrier on the path to homeownership, especially for Millennials and Gen Z. To break down these barriers and help more young Canadians buy a first home, Budget 2024 announced the federal government would allow up to 30 year amortizations for insured mortgages for first-time homebuyers purchasing new builds.
Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, announced that as of August 1, 2024, lenders will be able to begin to offer 30 year amortizations for insured mortgages for first-time homebuyers purchasing new builds, providing younger Canadians with more affordable monthly mortgage payment options. Extending amortizations by up to five years will allow for lower monthly payments-helping more young Canadians unlock the door to their first home, while also incentivizing the construction of more new homes.
This is part of the strengthened Canadian Mortgage Charter. The Mortgage Charter protects homeowners in mortgage difficulty by ensuring they have access to tailored mortgage relief, and takes action to restore generational fairness to the housing market for younger Canadians, such as intending for renters to improve their credit score with their on-time rent payments.
Building on the Tax-Free First Home Savings Account, which so far has helped more than 750,000 Canadians start saving for a down payment faster, first-time buyers of new builds will now be able to reduce their monthly payments by taking an additional five years to pay off their mortgage.
The federal government is helping every generation reach their full potential-including buying a home of their own-by building a Canada that is fair for every generation.
