OTTAWA — Finance Minister Chrystia Freeland announced Monday that Canadians will be able to borrow for longer, while also increasing the maximum value for insured mortgages, potentially giving buyers more money in the housing market.
Freeland announced that starting on Dec. 15, the cap for insured mortgages will rise to $1.5 million from the existing $1 million cap today. This would allow buyers to qualify for larger mortgages without putting 20 per cent down.
On the same day, the government is also expanding the availability of 30-year mortgages. In the spring budget, the government expanded the eligibility of those long-term mortgages to new buyers who were also purchasing new builds.
But now the 30-year availability will apply to both new buyers and people buying new construction homes.
More to come …
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