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2024 - Mortgage Rules What You Need To Know!
October 9, 2024 | Posted by: Nicholas Pratile
In 2024, several new mortgage rules will impact homebuyers in Canada, with significant changes set to take effect in December:
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Increase in the Insured Mortgage Cap: The cap for insured mortgages, previously limited to homes costing less than $1 million, will increase to $1.5 million. This change allows buyers of more expensive homes to qualify for mortgage insurance with less than a 20% down payment. It reflects rising home prices, particularly in markets like Toronto and Vancouver.
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30-Year Amortization for First-Time Buyers and New Builds: First-time buyers and those purchasing newly built homes will have the option to extend their mortgage term to 30 years, reducing monthly payments. While this lowers immediate costs, it also means paying more interest over the life of the loan. Buyers are encouraged to make extra payments when possible to reduce the total interest paid.
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Easier Lender Switching at Renewal: Borrowers will be able to switch lenders at mortgage renewal without undergoing another stress test. This change increases competition and could help homeowners secure better rates, removing the previous disadvantage of being tied to the same lender.
These updates aim to improve affordability, particularly in high-cost urban areas, but they may also lead to higher housing demand and increased competition in the market. It's important to assess both the short-term benefits and long-term financial impacts of these new rules.
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Mortgages with Nicholas
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