Multiple meaningful changes are coming to make homeownership and adding revenue to your principal residence more affordable for Canadians like you. Whether you’re a first-time homebuyer, a current homeowner whose mortgage is coming up for renewal, or someone looking to add a legal secondary suite or laneway home, these updates will help you make the most of your investment. Here are the key changes to be aware of:

• Higher insured mortgage availability: Starting December 15, 2024, the government is increasing the insured mortgage price cap from $1 million to $1.5 million. This makes higher-value homes available to buyers in more expensive markets with less than 20% down. This is especially helpful in cities like Toronto and Vancouver, where home prices often exceed $1 million. If you’ve been struggling to save up a large down payment, this change will help get you closer to owning a home.
• Extended 30-year amortizations: If you’re buying your first home or purchasing a new build, as of December 15th, 2024, you’ll have the option to stretch your mortgage payments over 30 years. This may allow you to qualify for a greater purchase price, or may make mortgage payments more manageable, allowing you to balance your monthly budget with other financial goals. More flexibility to afford other things like savings, travel, or education may be more easily within reach.
• Refinancing for secondary suites: Starting January 15, 2025, if you’re planning to add a legal secondary suite to your home (such as a basement apartment or a laneway house), you’ll be able to refinance your mortgage with an insured loan to help fund the construction from the equity in your home. With default loan insurance, the loan amount can be higher relative to the value of your home, allowing you to access more funds for renovations without needing a large down payment. Additionally, insured loans typically come with lower interest rates compared to conventional loans, which can result in significant savings over time. This could be beneficial if you want to build a rental suite to generate extra income or create more living space for family members. Not only does this increase the value of your home, but it also offers a smart financial strategy to support long-term goals.
• Renewing mortgages without a stress test: For those with uninsured mortgages approaching renewal, there’s more good news. The national banking regulator, the Office of the Superintendent of Financial Institutions (OSFI), has announced that it will “no longer require borrowers with uninsured mortgages to undergo a stress test when switching providers.” More will be formally communicated November 21, 2024. This means conventional borrowers will be joining insured borrowers (those who purchased with less than 20% down) to be able to qualify to switch lenders more easily, providing greater flexibility in managing their mortgages and potentially securing better rates and terms.

These reforms should go a long way to making buying and owning a home easier for many, providing greater flexibility, and helping borrowers capitalize on their home investment. Whether you’re looking to buy, refinance, or expand, it’s a great time to take advantage of these new options. Reach out any time to discuss to see how these changes can benefit you directly. My number is above and I’m always happy to help.

Sources:

Department of Finance “Backgrounder” October 8, 2024

Department of Finance “News Release” September 24, 2024

BNN Bloomberg, The Canadian Press, “OSFI easing stress test requirements for uninsured mortgages when switching providers” September 25, 2025