The Bank of Canada has announced a reduction in its target for the overnight rate to 3%, with the Bank Rate set at 3.25% and the deposit rate at 2.95%. Additionally, the Bank has outlined its plan to finalize the normalization of its balance sheet by ending quantitative tightening. Asset purchases will resume in early March, with a gradual approach to ensure the balance sheet stabilizes before experiencing modest growth in line with economic expansion.

The January Monetary Policy Report (MPR) highlights an increased level of uncertainty in its projections due to the rapidly shifting policy landscape, particularly regarding potential trade tariffs from the new U.S. administration. Because the extent and duration of a possible trade conflict remain uncertain, the report presents a baseline forecast that assumes no new tariffs.

According to the MPR, the global economy is projected to maintain growth at approximately 3% over the next two years. U.S. economic growth has been revised upward, primarily due to stronger consumer spending. In contrast, growth in the eurozone is expected to remain sluggish due to competitiveness challenges. In China, recent policy measures are supporting short-term demand and economic expansion, though structural challenges persist.

Since October, financial conditions have diverged internationally. U.S. bond yields have risen, driven by solid economic growth and persistent inflation. Meanwhile, Canadian bond yields have declined slightly. The Canadian dollar has weakened significantly against the U.S. dollar, largely due to trade uncertainty and overall strength in the U.S. currency. Oil prices have been volatile, rising by about $5 above the levels anticipated in the October MPR.

In Canada, previous interest rate cuts have already started stimulating the economy, and the momentum in consumption and housing activity is expected to continue. However, business investment remains weak, while exports are benefiting from expanded oil and gas export capacity.

The labour market remains soft, with the unemployment rate at 6.7% as of December. While job growth has improved in recent months, it had previously lagged behind labour force expansion for over a year. Wage pressures, which had been persistently high, are now showing early signs of easing.

The Bank anticipates that GDP growth will strengthen in 2025. However, given reduced immigration targets, both actual GDP growth and potential growth are expected to be more moderate than previous forecasts in October. Following an anticipated GDP growth rate of 1.3% in 2024, the Bank now projects GDP growth of 1.8% in both 2025 and 2026—a rate that slightly exceeds potential growth. Consequently, excess supply in the economy is projected to diminish gradually over time.

Inflation remains close to 2%, though fluctuations are occurring due to the temporary suspension of the GST/HST on certain consumer goods. While shelter price inflation remains high, it is gradually declining as anticipated. Various economic indicators, including inflation expectation surveys and price change trends within the CPI, suggest that underlying inflation is stabilizing around 2%. The Bank projects that CPI inflation will remain near its 2% target over the next two years.

Excluding potential U.S. trade tariffs, the economic outlook maintains a relatively balanced level of risks. However, the MPR warns that a prolonged trade dispute could result in lower GDP growth and higher consumer prices in Canada.

Given inflation stabilizing around 2% and an economy operating with excess supply, the Governing Council has decided to cut the policy rate by another 25 basis points to 3%. Since last June, the cumulative rate cuts have been significant. Lower interest rates are already stimulating household spending, and based on today's projections, the economy is expected to gradually strengthen while inflation remains stable. However, if significant trade tariffs were to be implemented, Canada's economic resilience would be put to the test.

The Bank will closely monitor economic developments and assess their impact on inflation and monetary policy. It remains dedicated to maintaining price stability for Canadians.

With the Bank of Canada lowering its policy rate to 3%, now is the time to assess your real estate plans. Whether you're buying, selling, or refinancing, lower rates could open new opportunities. Let’s discuss how this impacts your goals—contact us today!

Mortgage scams are more prevalent than you might think, targeting unsuspecting individuals with promises of financial relief or better loan terms. For many Canadians, their home is their most valuable asset, making it critical to remain vigilant. Mortgage scams can come in many forms, including:

• False promises for better mortgage terms.

• Wire fraud during the closing process, where scammers impersonate legal professionals to redirect payments.

• Reverse mortgage fraud, which drains home equity.

• Loan flipping, where borrowers are pressured into repeatedly refinancing loans so lenders can collect excessive fees.

To safeguard your finances and peace of mind, consider these tips to avoid falling victim to mortgage fraud:

• Research Lenders Thoroughly: Shop around for qualified lenders and verify their credentials on trusted sites like the Better Business Bureau.

• Understand Affordability: Your mortgage payment should ideally range between 28-32% of your gross monthly income. Be cautious of lenders willing to exceed this threshold—it’s a red flag.

• Never Prepay Without a Contract: Only provide payment to a lender once you have a fully executed agreement in writing.

• Guard Personal Information: Avoid sharing sensitive details, such as banking or personal information, in response to unsolicited offers.

• Read All Documentation Carefully: Take your time to review and understand all documents before signing anything. Consult a professional for clarity if needed.

• Monitor Your Credit Report: Regularly check your credit report to identify unauthorized transactions early.

• Consult Professionals: Be cautious of lenders who discourage you from seeking advice from a financial advisor, lawyer, or real estate professional.

• Watch for High-Pressure Tactics: Legitimate lenders will never bully or rush you into a decision.

A Final Word of Caution

If an offer sounds too good to be true, it almost always is. Scammers often prey on desperation or eagerness, so keep your guard up and trust your instincts. By staying informed and cautious, you can protect your financial future from those who aim to take advantage of it.

A total of 613 homes were sold in December 2024 via the MLS® System of the Ottawa Real Estate Board (OREB), representing a 7.9% increase from December 2023.

Despite this rise, home sales were 6.8% below the five-year average and 2.7% lower than the 10-year average for December. Year-to-date sales reached 13,526 units by December 2024, an 11.8% increase from the same period in 2023.

“A year of wait-and-see came to a close with the expected slowdown over the holiday season,” said OREB President Paul Czan. “The latter half of the year brought signs of more favourable market conditions with consecutive interest rate drops, higher insured mortgage limits, and extended amortizations. It’s early to assess the impact of these measures. And it’s an uphill battle against affordability and supply issues that persist.”

“Listing activity indicates that sellers anticipate improved conditions could spur more activity from buyers who have been keeping a close eye on the market but hesitant to make moves. Buyers are still limited in their selection of affordable inventory that can meet current demands, which stalls movement. While the improving market conditions are encouraging, the supply needs to be there. Coming political shifts are adding a layer of uncertainty but there is a trending optimism for more increased market activity in the months ahead.”

By the Numbers – Prices

The MLS® Home Price Index (HPI), which tracks price trends more accurately than average or median prices, highlighted the following:

• The overall MLS® HPI composite benchmark price was $645,800 in December 2024, up 3.8% from December 2023.

  • Single-family homes: $729,300, an increase of 3.7% year-over-year.

  • Townhouse/row units: $533,200, up 11.3% from a year ago.

  • Apartments: $404,400, down 2.5% compared to December 2023.

• The average sale price in December 2024 was $663,781, a 4.4% increase from December 2023.

• Year-to-date, the average price was $679,067, rising 1.3% compared to 2023.

• The total dollar volume of home sales in December 2024 was $406.9 million, up 12.7% year-over-year. For the entire year, the total dollar volume reached $9.2 billion, an increase of 13.3% from 2023.

OREB cautions that while average sale prices offer insight into market trends over time, they do not reflect changes in the value of individual properties. Average price calculations are derived from the total dollar volume of all properties sold, with prices varying significantly by neighbourhood.

By the Numbers – Inventory & New Listings

• New listings: 603 new residential properties were added in December 2024, marking a 13.6% increase from December 2023. This was 3.5% above the five-year average but 2.7% below the 10-year average for December.

• Active listings: Residential listings totalled 3,216 units at the end of December 2024, a surge of 58.7% compared to December 2023. Active listings were 90% above the five-year average and 51.4% above the 10-year average for the month.

• Months of inventory: There were 5.2 months of inventory at the end of December 2024, compared to 3.6 months in December 2023. This metric reflects the time it would take to sell all current inventory at the current sales pace.

The Bank of Canada today reduced its target for the overnight rate to 3¼%, with the Bank Rate at 3¾% and the deposit rate at 3¼%. The Bank is continuing its policy of balance sheet normalization.

The global economy is evolving largely as expected in the Bank’s October Monetary Policy Report (MPR). In the United States, the economy continues to show broad-based strength, with robust consumption and a solid labour market. US inflation has been holding steady, with some price pressures persisting. In the euro area, recent indicators point to weaker growth. In China, recent policy actions combined with strong exports are supporting growth, but household spending remains subdued. Global financial conditions have eased and the Canadian dollar has depreciated in the face of broad-based strength in the US dollar.

In Canada, the economy grew by 1% in the third quarter, somewhat below the Bank’s October projection, and the fourth quarter also looks weaker than projected. Third-quarter GDP growth was pulled down by business investment, inventories and exports. In contrast, consumer spending and housing activity both picked up, suggesting lower interest rates are beginning to boost household spending. Historical revisions to the National Accounts have increased the level of GDP over the past three years, largely reflecting higher investment and consumption. The unemployment rate rose to 6.8% in November as employment continued to grow more slowly than the labour force. Wage growth showed some signs of easing, but remains elevated relative to productivity.

A number of policy measures have been announced that will affect the outlook for near-term growth and inflation in Canada. Reductions in targeted immigration levels suggest GDP growth next year will be below the Bank’s October forecast. The effects on inflation will likely be more muted, given that lower immigration dampens both demand and supply. Other federal and provincial policies—including a temporary suspension of the GST on some consumer products, one-time payments to individuals, and changes to mortgage rules—will affect the dynamics of demand and inflation. The Bank will look through effects that are temporary and focus on underlying trends to guide its policy decisions.

In addition, the possibility the incoming US administration will impose new tariffs on Canadian exports to the United States has increased uncertainty and clouded the economic outlook.

CPI inflation has been about 2% since the summer, and is expected to average close to the 2% target over the next couple of years. Since October, the upward pressure on inflation from shelter and the downward pressure from goods prices have both moderated as expected. Looking ahead, the GST holiday will temporarily lower inflation but that will be unwound once the GST break ends. Measures of core inflation will help us assess the trend in CPI inflation.

With inflation around 2%, the economy in excess supply, and recent indicators tilted towards softer growth than projected, Governing Council decided to reduce the policy rate by a further 50 basis points to support growth and keep inflation close to the middle of the 1-3% target range. Governing Council has reduced the policy rate substantially since June. Going forward, we will be evaluating the need for further reductions in the policy rate one decision at a time. Our decisions will be guided by incoming information and our assessment of the implications for the inflation outlook. The Bank is committed to maintaining price stability for Canadians by keeping inflation close to the 2% target.

The next scheduled date for announcing the overnight rate target is January 29, 2025.

Source: bankofcanada.ca

When purchasing a home in Ontario, it’s easy to focus on the down payment and mortgage without considering other hidden costs. However, these additional expenses can add up quickly and significantly impact your budget. Whether you're a first-time homebuyer or have experience in the real estate market, it’s essential to be aware of the various costs involved in the process. Here’s a breakdown of the most common hidden costs associated with buying a home in Ontario.

1. Land Transfer Tax

One of the largest additional costs in Ontario is the land transfer tax. This tax is based on the home's purchase price and is paid to the province, and in the case of Toronto, an additional municipal tax applies.

For example, for a home priced at $700,000, the land transfer tax would be calculated as follows:

• 0.5% on the first $55,000 = $275

• 1.0% on the next $195,000 = $1,950

• 1.5% on the next $400,000 = $6,000

• 2.0% on the remaining $50,000 = $1,000
  Total provincial tax = $9,225

If you are purchasing in Toronto, there would be an additional municipal tax of $9,225, making the total land transfer tax $18,450.

First-time buyers may be eligible for a rebate, which can reduce the provincial tax by up to $4,000. Always check for rebates that may apply based on your specific situation.

2. Legal Fees

When you purchase a home, you'll need to hire a lawyer to handle title transfers, review contracts, and ensure the property is properly registered. Legal fees typically range from $1,500–$3,000, depending on the complexity of the transaction. Keep in mind that if your transaction is more complicated, for example, involving a private sale or a special agreement, the fees could be on the higher end.

3. Title Insurance

Title insurance is a one-time fee that protects you against title-related issues such as fraud, errors in the public record, or disputes over property ownership. It typically costs between $350–$600 and can offer peace of mind in case of any unforeseen issues with the property’s title.

4. Home Inspection

A home inspection is an optional but highly recommended step in the home-buying process. It allows you to assess the property’s condition and uncover potential issues that may not be immediately visible. Home inspections typically range from $300 to $750, depending on the size of the property. For larger homes, the cost can be higher.

In addition to a general home inspection, you might want to consider additional specialized inspections, such as for septic systems, wells, or mold. These inspections can cost anywhere from $300 to $1,000 or more, depending on the property’s needs.

5. Appraisal Fee

Lenders typically require an appraisal to confirm the value of the property. This is an essential step for securing your mortgage. The average cost of an appraisal in Ontario ranges from $500 to $700, and this cost is usually borne by the buyer.

6. Property Taxes Adjustment

If the seller has already paid property taxes for the year, you may need to reimburse them for the portion of taxes that applies after your closing date. For example, if the seller has prepaid $7,000 in property taxes and you close mid-year, you would owe approximately $3,500.

7. Mortgage Insurance

If your down payment is less than 20%, CMHC insurance is mandatory. This insurance protects the lender in case you default on your loan. The cost of mortgage insurance depends on your down payment amount and the size of your mortgage. For a home priced at $700,000 with a 10% down payment, this cost could be $21,168, which would be added to your mortgage principal.

8. Moving Costs

Moving costs can vary greatly depending on the distance and services you require. For a local move, professional movers may charge between $1,000 to $1,500 for a single-family home, while a DIY move with a truck rental could cost between $200 to $400. Long-distance moves or additional services, such as packing, may increase costs.

9. Utility Hookups and Adjustments

When moving into your new home, you’ll need to set up utilities such as hydro, gas, water, and internet. Utility hook-up fees in Ontario can range from $30 to $150 depending on the service provider and the specific utility. If you’re moving into a home that’s been vacant for a while, you may also need to pay for reconnection or activation services.

10. Condo Fees

If you’re purchasing a condominium, you may need to pay a prorated portion of the monthly condo fees at closing. For example, if the condo fees are $400 per month, and you close mid-month, you may owe around $200 for the rest of the month. Condo fees vary widely based on the amenities and services provided by the building.

11. HST on New Builds

Unlike resale homes, new builds in Ontario are subject to HST (13%). For a new home priced at $700,000, HST would add an additional $91,000 to the cost. However, you may be eligible for an HST rebate if your new home costs under $450,000 or if you're a first-time homebuyer. Make sure to confirm whether the HST is included in the purchase price or if it will be added on top of it.

Budgeting for a Smooth Home Buying Experience

While the down payment is often the primary focus of most homebuyers, it’s important not to overlook these hidden costs. From legal fees and property taxes to mortgage insurance and utility hook-ups, these additional expenses can quickly add up and affect your overall budget.

Planning ahead and budgeting for these costs will help ensure a smoother and more predictable home-buying experience. Consider working with a knowledgeable real estate agent or financial advisor to better understand these costs and manage your finances effectively.

Ready to buy your dream home? Take the time to research these hidden costs and set your budget accordingly—so you can move in with confidence and avoid any financial surprises along the way.

Today, the Bank of Canada lowered its target for the overnight rate to 3.75%, with the Bank Rate set at 4% and the deposit rate at 3.75%. The Bank continues its balance sheet normalization efforts.

Globally, the economy is projected to grow at a steady 3% over the next two years. Growth in the U.S. is anticipated to be stronger than previously expected, while China’s outlook remains cautious. The euro area’s growth has been sluggish but is expected to improve modestly next year. Inflation in advanced economies has decreased recently, aligning with central bank targets. Since July, global financial conditions have eased, partly due to expectations of lower policy interest rates. Additionally, global oil prices are roughly $10 lower than projected in the July Monetary Policy Report (MPR).

In Canada, economic growth was around 2% in the first half of the year, with an anticipated 1.75% growth in the second half. While overall consumption has grown, it has decreased on a per-person basis. Exports have seen a boost from the opening of the Trans Mountain Expansion pipeline. The labor market remains subdued, with the unemployment rate at 6.5% as of September. Population growth continues to expand the labor force, but hiring has been moderate, impacting young people and newcomers the most. Wage growth remains high compared to productivity growth, indicating excess supply in the economy.

Looking ahead, GDP growth is expected to strengthen gradually as lower interest rates support economic activity. A modest increase in consumer spending per capita, along with slower population growth, is expected to drive this recovery. Residential investment is projected to rise, fueled by strong housing demand, while business investment should pick up as overall demand grows. Exports are likely to stay robust, supported by strong U.S. demand.

The Bank forecasts GDP growth of 1.2% in 2024, 2.1% in 2025, and 2.3% in 2026. As the economy gains momentum, the excess supply will gradually be absorbed.

Consumer Price Index (CPI) inflation has dropped notably from 2.7% in June to 1.6% in September. While inflation in shelter costs remains high, it has begun to ease. Excess supply in the broader economy has lowered the prices of many goods and services, and the recent drop in global oil prices has driven down gasoline costs. These factors have collectively brought inflation down. The Bank’s core inflation measures are now below 2.5%. With inflation pressures no longer widespread, expectations from businesses and consumers have largely stabilized.

The Bank anticipates that inflation will hover around its target range throughout the forecast period. The upward pressure from shelter and services costs is expected to diminish, while downward pressures should ease as the economy absorbs the current excess supply.

With inflation nearing the 2% target, the Governing Council has decided to reduce the policy rate by 50 basis points to bolster economic growth and maintain inflation around the mid-point of the 1% to 3% target range. If the economy aligns with the Bank's forecast, additional rate cuts are anticipated. However, the timing and pace of any future reductions will depend on economic data and its implications for inflation. Decisions will be made on a meeting-by-meeting basis. The Bank remains dedicated to maintaining price stability for Canadians, keeping inflation close to the 2% target.

Source: bankofcanada.ca

The Government of Canada has announced a series of comprehensive mortgage reforms designed to make homeownership more attainable, particularly for younger Canadians. Rising mortgage costs have long been a barrier to buying a home, especially for Millennials and Gen Z. In response, new rules were introduced on August 1, 2024, allowing 30-year insured mortgages for first-time buyers purchasing newly constructed homes.

The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, announced further changes to make mortgages more affordable and homeownership more accessible. Key reforms include:

• Raising the cap on insured mortgages from $1 million to $1.5 million starting December 15, 2024. This reflects current housing market conditions and will help more Canadians qualify for a mortgage with less than a 20% down payment.

• Expanding eligibility for 30-year mortgage amortizations to all first-time homebuyers and buyers of new builds, effective December 15, 2024, reducing monthly payments and boosting affordability. This also aims to encourage new housing construction, addressing the ongoing housing shortage.

These reforms build on the enhanced Canadian Mortgage Charter from Budget 2024, which allows insured mortgage holders to switch lenders at renewal without undergoing another mortgage stress test. This fosters greater competition and ensures that Canadians can secure the best mortgage rates when renewing.

These changes represent the most significant mortgage reforms in decades, forming part of the government's broader plan to build nearly 4 million homes—the largest housing initiative in Canadian history. Additional regulatory updates will be introduced in the coming weeks.

In addition to making mortgages more accessible, the federal government is taking steps to protect homebuyers and renters. Today, blueprints for a Renters’ Bill of Rights and a Home Buyers’ Bill of Rights were unveiled. These new policies, developed in partnership with provinces and territories, aim to eliminate unfair practices, simplify leases, and increase transparency in the housing market. The government is also leveraging the $5 billion Canada Housing Infrastructure Fund to encourage provincial action on issues like renovictions, blind bidding, and standardized lease agreements.

Quotes
“We’ve already helped more than 750,000 Canadians save for a down payment through the Tax-Free First Home Savings Account. Now, with these bold mortgage reforms, we are making it easier for Canadians—especially younger generations—to achieve homeownership. By raising the insured mortgage cap and extending repayment terms, we are unlocking homeownership for more people and encouraging lender competition to secure better rates.”
— The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance

“Everyone deserves a safe, affordable home. These new mortgage measures will significantly help Canadians, especially first-time buyers, as they enter the housing market.”
— The Honourable Sean Fraser, Minister of Housing, Infrastructure, and Communities

Quick Facts

• The enhanced Canadian Mortgage Charter ensures that Canadians facing mortgage difficulties have access to tailored relief, and supports first-time homebuyers.

• Mortgage loan insurance enables Canadians to finance up to 95% of their home’s purchase price, helping them secure competitive interest rates with smaller down payments.

• The government’s housing plan, the largest in Canadian history, will unlock nearly 4 million new homes to make housing more affordable.

• The Tax-Free First Home Savings Account allows Canadians to save up to $8,000 annually and $40,000 in total, tax-free, towards a down payment.

• The Home Buyers’ Plan limit was increased from $35,000 to $60,000 in Budget 2024, allowing first-time buyers to withdraw from their Registered Retirement Savings Plan (RRSP) to build or buy their first home. This can be combined with the Tax-Free First Home Savings Account for maximum savings.

Source: www.canada.ca

Do you often find yourself browsing listings and dreaming about your next move? If so, it’s essential to look beyond listing prices and down payments. Whether you're looking to upgrade or make your first investment, it's crucial to consider various financial aspects before buying a home. Here are some key expenses to factor into your decision:

Utilities

Upgrading to a larger home or one with older, less efficient appliances can significantly impact your utility costs. It's important to estimate these additional expenses accurately. Consider the size of the home, the age and efficiency of the heating, cooling, and water systems, and any additional appliances that might come with the property. Add these estimated costs to your current monthly budget to see how a move might affect your overall spending. Doing this will help you avoid any surprises when your first utility bill arrives after the move.

Mortgage Penalty

Breaking your current mortgage term early might come with a penalty, which is usually around three months' worth of interest. However, this amount can vary depending on your lender and the terms of your mortgage. It's crucial to read the fine print of your mortgage agreement and understand the penalties for early repayment or refinancing. In some cases, negotiating with your lender for a lower penalty or even exploring the possibility of porting your mortgage to the new property might be beneficial. Always consult with your financial advisor to understand the best course of action.

Moving Costs

Moving is never just about transporting your belongings from one place to another. There are numerous additional expenses to consider. If you plan to hire professional movers, get quotes from multiple companies and check for any hidden fees, such as charges for moving large items or extra insurance. If you opt for a DIY move, factor in the cost of renting a moving truck, fuel, and possibly temporary storage. Don’t forget smaller costs like packing materials or even throwing a pizza party to thank friends who help you move. If your schedule allows, consider moving during the off-peak season when costs tend to be lower.

Legal Fees

Hiring a trusted real estate lawyer is essential to ensure that all the legal aspects of your home purchase are handled correctly. Legal fees can vary widely, so it’s important to understand what services are included in the fee structure. These services typically include reviewing the purchase agreement, conducting a title search, handling the transfer of funds, and registering the new property with the local land registry office. Always get a detailed breakdown of the estimated costs and confirm these with your lawyer before you sign any offers. This will help you avoid any unexpected charges at closing.

Additional Considerations

Beyond these primary expenses, there are other costs to consider when buying a home. These might include home inspection fees, property taxes, insurance, and potential renovations or repairs needed immediately after purchase. A thorough home inspection can reveal issues that might not be apparent during a regular viewing and can give you leverage in negotiating the purchase price or requesting repairs before closing.

By carefully considering all these financial aspects, you can make a well-informed decision and ensure that your dream move doesn't turn into a financial nightmare. Planning ahead and budgeting for these expenses will help you transition smoothly into your new home and enjoy it from day one.

Ready to dive deeper into the home-buying process? Visit our latest blog for comprehensive tips and insights to guide you every step of the way. Contact us to ensure you're well-prepared for a successful move by uncovering all potential hidden costs!

First-time buyers of new construction homes in Canada can now access longer mortgage amortization periods.

Effective August 1st, 2024, lenders can offer 30-year amortizations for insured mortgages to first-time homebuyers of new construction homes, following a modification by the federal government. Previously, the maximum amortization for an insured mortgage—one requiring mortgage insurance due to a down payment of less than 20%—was 25 years. Homes priced at $1 million or more automatically require a 20% down payment and an uninsured mortgage loan.

The federal government states that extending payments over an additional five years will help lower monthly mortgage payments, making housing costs more affordable for young Canadians and incentivizing the construction of much-needed housing supply.
“For every young Canadian who wants to own a home, we want them to qualify for a mortgage and afford their first home. One of the biggest hurdles to homeownership for younger Canadians is qualifying for a mortgage and managing the monthly payments,” said Chrystia Freeland, Deputy Prime Minister and Minister of Finance, in a press release. “That is why, starting August 1, first-time buyers of new builds will be able to reduce their monthly payments with up to 30-year mortgages. This is just one of many new measures our government is implementing to make homeownership a reality for younger Canadians.”

What do I need to qualify for a new build 30-year amortization?
If you’re a first-time buyer shopping for a new construction home and plan to take out a 30-year mortgage, here are some requirements to keep in mind:

• At least one borrower on the application must be a first-time homebuyer, meaning they have never purchased a home before and have not occupied a home as a principal residence that they or their current spouse or common-law partner have owned in the last four years.
• The home being purchased must be newly constructed, meaning it has not been previously occupied for residential purposes.
• Only high-ratio mortgages will be applicable—mortgages where the loan amount exceeds 80% of the home price (i.e., has a down payment of less than 20%).
• All other eligibility criteria for government-guaranteed mortgage insurance will still apply.

Thirty-year amortizations for insured new build mortgages were first announced in the 2024 federal budget, alongside other affordable housing measures.

Source: Royal LePage Team Realty