While the real estate market is already seeing signs of recovery and prices may soon return to overheating, the federal government has announced a new measure to help first-time buyers access property, reports theAgence QMI.
Thus, first-time buyers will soon be able to purchase a new home with a 30-year amortization on their mortgage, whereas it is currently limited to 25 years.
Finance Minister Chrystia Freeland announced such a measure on Thursday while she is currently on a pre-budget announcement tour.
Current mortgage rules state that a buyer must pay 20% down on the price of the property. He must then spread his mortgage over a period of 25 years maximum.
“The extension of this five-year amortization period for buyers of a first new property will allow a greater number of young people to pay a monthly mortgage payment and will stimulate the supply of housing,” however announced the Department of Finance of Canada.
If you already own a house or want to buy a house on the resale market, you are not affected by this rule. The new rule only targets first-time buyers of new homes. So, if you do not meet these two criteria, your mortgage limit will still be a maximum of 25 years of amortization.
This new rule will be in effect from August 1. In the meantime, all transactions taking place in the current real estate market are subject to the old rules and the amortization limit remains 25 years.
2024-04-12 23:38:09
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