30 Year Amortizations for First-Time Buyers

Date Posted: August 1, 2024

In the 2024 Budget the Government of Canada announced that they will be introducing 30 year amortizations for first-time home buyers on new builds. As of today, August 1, 2024, the Canadian Mortgage Charter will help Canadians unlock the door to their first home by allowing first-time buyers of newly built homes to have an additional five years to pay off their mortgage, resulting in lower monthly payments.

Many brokers in the industry are encouraged by the step in the right direction while some wish that there was a bit more done.

Frank Napolitano of Mortgage Brokers Ottawa in an interview with CTV News. “I think it'll help a few people, but not very many at this point. We're talking about interest rates that are still pretty elevated, and young Canadians that are struggling to come up with a down payment without the bank of mom and dad." 

On a $500,000 mortgage, Napolitano said, a 30-year amortization period could help lower monthly payments by $250, but he doesn't think it's significant enough.

While this may help some young Canadians qualify for a mortgage, those who could already qualify will be able to see a bit of monthly payment relief if they qualify for this program.

To read more details about the program click here.