I’m excited to share the latest edition of my newsletter, filled with valuable updates and insights to keep you informed and empowered on your homeownership journey! This month, we’re focusing on significant changes in the mortgage world that could directly impact your future plans—whether you’re looking to buy, move, or prepare for a mortgage renewal.

Key Mortgage Reforms: What’s Changing?

The Government of Canada has introduced major mortgage reforms to make homeownership more accessible and affordable for Canadians. Here’s a quick overview:

• No More Stress Test for Switchers at Renewal
  Beginning November 21, homeowners switching lenders at mortgage renewal will no longer need to pass the mortgage stress test. Previously, borrowers had to prove they could handle payments at a rate 2% higher than their contract rate, which posed challenges as rates rose to 6%, pushing the stress test rate to 8%. This change simplifies the process for borrowers with uninsured mortgages, aligning them with insured borrowers, who were already exempt.

• Increased Insured Mortgage Cap
  Starting December 15, 2024, the insured mortgage cap will rise from $1 million to $1.5 million, marking the first increase since 2012! This adjustment better reflects today’s housing market and will allow more Canadians to qualify for mortgages with less than a 20% down payment.

• Extended 30-Year Amortization for First-Time Buyers and New Builds
  Also effective December 15, 2024, first-time homebuyers and those purchasing new builds will be eligible for a 30-year amortization on insured mortgages, up from the current 25-year cap. This extension is designed to reduce monthly mortgage payments, making homeownership more affordable and encouraging new home construction to address the housing shortage.

Building on Earlier Initiatives in 2024
These reforms follow other changes introduced earlier this year, including:

• RRSP Home Buyer’s Plan: The limit was increased from $35,000 to $60,000, giving Canadians more flexibility when using their savings to purchase a home.
• Permanent Amortization Relief: Homeowners facing rising mortgage payments now have long-term support through this measure.

As more details become available, I’ll keep you updated on how these changes can benefit you. Whether you’re considering a move or approaching a mortgage renewal, this is the perfect time to explore your options.

Let’s connect and discuss how these reforms might work for you. Contact me for a free, no-obligation consultation! www.monicapeckford.com