As a follow-up to last week’s announcement, the federal government has unveiled a more detailed framework for its updated mortgage rules, which are set to take effect on December 15, 2024.

Effective December 15, 2024, the cap for insured mortgages will increase from $1MM to $1.5MM. This means that borrowers looking to purchase a home without a 20% down payment can do so with as little as 5% down on the first $500,000 in purchase price, and then 10% on any portion between $500,000 and $1,499,999. This will make minimum down payment on a $1,499,999 home $130,000 – down from $300,000, as it stands currently. 

Additionally, first-time homebuyers and those purchasing a new construction property will be eligible to take an insured mortgage with an amortization of up to 30 years. Currently, a 30-year amortization is reserved for only those purchasing a new build as a first-time homebuyer and those buying with a down payment of at least 20%.

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