Home Prices Expected to Climb in 2024 CREA | Budget & Housing Plan | Rev Can to Confirm Income

I hope this message finds you well. I'm thrilled to share some fantastic news that will significantly impact first-time homebuyers across Canada. The federal government has recently announced several initiatives aimed at making homeownership more accessible for first-time buyers. 

Starting August 1st, first-time homebuyers purchasing newly built homes will be eligible for 30-year amortization periods on insured mortgages. This extended period provides greater flexibility in managing mortgage payments, easing the financial burden for those embarking on their homeownership journey. 

So Let's Break This Down... 

Consider the following example: 

●  $750,000 purchase price for a new build

●  Minimum down payment of $50,000

●  5 year fixed rate of 4.99%

Under the current rules with a 25 year amortization, your mortgage payment would be $4,230. With the new rules and a 30 year amortization, your mortgage payment would be $3,881. That's $349 in monthly savings! 

This rule change will also provide eligible homebuyers with an additional 5% in purchasing power. For instance, on a $750,000 home purchase, the minimum household income requirement decreases from $179,062 to $169,689. 

Contact Me if You Have Questions! 

Have questions about these rule changes or want to discuss your options? Please reach out to me for personalized guidance - I'm here to help! 

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