If you’re thinking about buying your first home or looking at new construction, this is great news for you. Canada has finally updated the mortgage rules, and for the first time in years, buyers are getting a real boost in affordability.
Let’s break it down in simple, easy-to-understand terms so you know exactly how this can help you or your clients.
So, What Actually Changed?
✔ 30-Year Amortization for First-Time Buyers
If you’re buying your very first home, you can now stretch your mortgage over 30 years instead of the usual 25.
Why does that matter?
Lower monthly payments = easier budgeting + a little extra breathing room.
This applies even if you're buying a resale home — not just new construction.
✔ 30-Year Amortization for New Construction (For Everyone!)
This is a big one.
If you're buying new construction, you don’t have to be a first-time buyer to qualify for a 30-year amortization.
This helps:
→Growing families
→Investors
→Move-up buyers
Anyone who wants a newly built home with smaller monthly payments
✔ Insured Mortgage Limit Increased to $1.5 Million
Homes up to $1.5M can now qualify for insured mortgages with less than 20% down.
This is especially helpful in areas like the GTA, where prices are much higher and buyers were stuck because of the old $1M cap.
✔ A Small Premium Surcharge
Because a longer amortization is considered higher risk, there is a small insurance premium added.
But for many buyers, the reduced monthly payment is worth it.
Why These Changes Matter
The government introduced these updates to:
→Make homeownership more affordable
→Help first-time buyers get into the market sooner
→Encourage more new construction
→Reflect today’s reality of higher home prices
Overall, this gives buyers more flexibility, more buying power, and more options.
What Buyers Should Keep in Mind
A longer amortization means paying more interest over time
Not all lenders may offer 30-year options right away
These rules apply only to insured mortgages (less than 20% down)
But for many people, this change can make the difference between “maybe someday” and “I can actually buy now.”
Final Thoughts
This update is a game-changer for buyers in 2025. Whether you’re stepping into your first home or exploring new construction, these expanded amortization options can make homeownership feel much more realistic and far less stressful.
If you ever need help understanding your options — or you just want someone to walk through the numbers with you — I’m always here.
From Loan to Home — Your Trusted Path to Ownership. 🏡