Extension of 30-Year Amortization
Starting December 15, 2024, a new era begins for property buyers in Montreal. Whether you’re a first-time buyer or purchasing a newly constructed property, you can now benefit from a 30-year amortization for your mortgage.
Who is Eligible?
- First-time homebuyers
- Buyers of newly constructed properties
- All buyers, regardless of down payment amount
This measure, previously limited to first-time buyers of newly constructed properties with an insured mortgage, now extends to a broader range of buyers.
Understanding Insured Mortgages
An insured mortgage is mandatory when the down payment is less than 20% of the property value. Here are the key points to remember:
- Applies to down payments between 5% and 20%
- Protects the lender in case of default
- No longer a condition for benefiting from 30-year amortization
Increase in Insured Mortgage Ceiling
Another important modification concerns the ceiling for insured mortgages:
- Previous ceiling: $1 million
- New ceiling: $1.5 million
- Effective date: December 15, 2024
This increase, the first since 2012, opens new possibilities for buyers in Canada, particularly in an ever-evolving real estate market.
Impact on the Greater Montreal Real Estate Market
This measure should have several positive effects:
- Expanding purchase options for first-time buyers
- Stimulating new housing construction
- Increasing property accessibility in sought-after Montreal neighbourhoods
Simplification of Mortgage Renewal
A long-awaited measure has finally been implemented, greatly simplifying the mortgage renewal process:
- Ability to transfer loans to another lender without requalification
- Elimination of the requirement to retake the interest rate stress test
- Greater flexibility to negotiate better terms
Benefits for Montreal Homeowners
- Potential savings through better rate negotiation
- Reduced stress related to renewal
- Ability to adapt loans to current financial situations
Conclusion: A More Accessible Mortgage Market in Montreal
These changes represent a significant evolution in Montreal’s mortgage landscape. They offer more flexibility and options to buyers and homeowners while potentially stimulating the local real estate market.
To navigate these new waters, consulting a mortgage broker is more important than ever. Their expertise will help you make the best of these new rules and realize your real estate dreams in 2024 and beyond.
