Are you planning to buy or sell real estate in Canada? Major updates in the real estate and mortgage landscape are set to transform the market—and they could directly impact your next move. From reduced interest rates to new mortgage rules, here are three changes you need to know and how they might benefit you.
1. Lower Interest Rates Are Here
The Bank of Canada recently lowered its key interest rate to 3.25%. This marks the fifth rate cut in just six months, making borrowing more affordable for buyers. Lower interest rates mean smaller monthly mortgage payments, which can make a big difference in your budget and buying power. Whether you're purchasing your first home, upgrading, or refinancing, this is a golden opportunity to lock in a great rate.
2. Insured Mortgage Price Cap Increased to $1.5 Million
Previously, insured mortgages (those with less than 20% down payment) were capped at $1 million. As of December 2024, that limit has been increased to $1.5 million. This is fantastic news for buyers in higher-priced markets or those looking to get into a larger home sooner.
3. Expanded 30-Year Amortization Options
If you’re a first-time homebuyer or you are purchasing a newly built home, there’s now an option to spread your mortgage payments over 30 years. Extending the amortization period means smaller monthly payments, making it easier to afford a home while managing other financial priorities. This change is designed to make homeownership more attainable, especially for those just starting their home ownership journey.
What These Updates Mean for You
These updates are designed to boost housing affordability and expand opportunities for Canadians in the real estate market. Whether you’re buying your first home, upgrading, or considering selling, these changes can have an impact on your plans.
Take Action Today
If you're curious about how these changes could affect your buying power or selling strategy, don’t wait! Understanding how to leverage these updates can make all the difference in a competitive market.
Reach out today! Drop your questions in the comments or get in touch directly to explore how these changes can work for you in 2025. Together, we can create a plan that aligns with your real estate goals.