Key Updates to Canada’s Mortgage and Lending Policies
Here’s a quick rundown of recent changes that could impact Canadian homebuyers:
1. Interest Rate Cut
The Bank of Canada reduced its key lending rate on September 4th by 0.25%. Another rate cut is expected on October 24th. This makes borrowing more affordable.
2. Stress Test Adjustment
Starting November 21st, homeowners switching lenders won’t need to redo the stress test, provided there’s no change to loan terms like amortization or loan amount.
3. Higher Mortgage Cap
On December 15th, the insured mortgage cap will rise from $1 million to $1.5 million, helping more Canadians purchase with less than a 20% down payment.
4. Extended Amortization
Also, starting December 15th, 30-year amortization periods will be available to first-time buyers and new construction purchasers, easing monthly payments.
These changes are designed to make homeownership more accessible and manageable in today’s market.
