Tuesday, October 7, 2025

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30-Year Mortgages For All: Canada Again Changes Mortgage Rules For First Time Homebuyers

In a move to address Canada’s housing affordability crisis, Finance Minister Chrystia Freeland announced significant changes to federal mortgage policies on Monday. The reforms, described as the most substantial in decades, aim to make homeownership more accessible for first-time buyers and stimulate the new construction market.

Effective December 15, the price cap for insured mortgages will increase from $1 million to $1.5 million, potentially benefiting buyers in high-cost markets like Vancouver and Toronto. Additionally, 30-year mortgage amortizations will be extended to all first-time homebuyers, expanding on the August 1 policy that applied only to new builds.

These changes are expected to lower monthly mortgage payments and increase purchasing power for many Canadians. However, critics argue that such measures may further inflate housing prices in an already overheated market.

The government’s decision to broaden 30-year amortizations appears to be a response to cooling inflation and interest rates. While this may provide short-term relief for buyers, it could lead to higher overall interest costs over the life of the mortgage.

The new policies also aim to reinvigorate the struggling preconstruction condo market, where sales have plummeted to multi-year lows. By making these properties more attractive to investors and first-time buyers alike, the government hopes to spur new housing development.

As Parliament resumes after a summer recess, housing affordability remains a top concern for voters. The Liberal government’s latest moves seem designed to appeal to younger Canadians struggling to enter the housing market.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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