First-time homebuyers in Canada will soon enjoy extended mortgage amortization periods of up to 30 years for newly built homes, effective August 1, 2024. This initiative, part of the 2024 federal budget, aims to ease monthly mortgage payments amid high-interest rates, benefiting younger Canadians.
Moreover, the Home Buyers’ Plan limit will increase from $35,000 to $60,000, allowing individuals to withdraw more from their RRSP for down payments. Those who withdrew between January 1, 2022, and December 31, 2025, will have a three-year grace period extension for repayments, giving them up to five years before repayment begins.
However, the extended amortization applies only to insured mortgages for new builds. This presents a challenge in hot markets like Vancouver and Toronto, where most new builds exceed one million dollars and require uninsured mortgages, excluding many from eligibility.
