30 year mortgage amortizations return for first time buyers

Last week Deputy Prime Minister and Finance Minister Chrystia Freeland announced that 30-year amortization periods for first-time buyers on new construction homes will be available starting August 1st.

You might be surprised how much more the amortization will affect affordability than interest rates.

If someone wants a $2,000/month mortgage payment they would currently have to buy something at $350,000 (4.89% and 25 year amortization).

When the amortization period increases to 30 years on August 1, this $2,000/month mortgage will now allow you to buy a house at $380,000 (4.89% and 30 year amortization).

For every 0.25% decrease in the interest rate, buyers get an additional $10,000 of buying power.   

Click the link below for more information or contact one of our Sales Associates and they will be happy to tell you more.


Article: Putting home ownership back within reach and supporting Canadian homeowners