Jen Tripp Real Estate

Big Changes to Mortgage Rules Coming December 15th!
Get ready for a game-changer in the housing market! The Government has just announced some exciting updates to mortgage rules that could open doors for many buyers. Here’s what you need to know:

What’s New?
Price Cap Boost: The cap for insured mortgages is jumping from $1 million to $1.5 million!
30-Year Amortization: First-time homebuyers and buyers of new builds can now enjoy 30-year amortizations (previously 25 years).
Who Will Benefit?
These changes primarily help buyers looking to purchase a principal residence priced up to $1,499,999 with less than 20% down. This is especially great news for folks in pricey markets like Toronto!

Why Does This Matter?
Let’s break down the potential benefits:

Higher Purchase Power with Lower Down Payments:

Right now, you’d need a hefty $300,000 (20%) to buy a home for $1,499,999.
After December 15th, you could snag the same home with just $125,000 down (that’s only 5% on the first $500,000 and 10% on the rest).
Lower Monthly Payments Thanks to Longer Amortizations:

With the new 30-year option, your monthly payments could drop significantly!
For instance, on an $800,000 mortgage at a fixed rate of 4.29%, a 25-year amortization would cost you about $4,334.86 per month. Switch to a 30-year plan, and that could shrink to just $3,936.53!
Possibly Lower Interest Rates:

Insured mortgage rates are often 0.50% lower than uninsured ones because they’re backed by the government.
For example, if an uninsured rate is 4.79%, you might snag an insured rate of 4.29%. Just remember, there’s an insurance premium (2.8% to 4.0% of the loan) that usually gets rolled into the mortgage.
What’s Next?
Stay tuned for more details coming your way soon! If you have any questions or want to chat about how these changes could impact you, don’t hesitate to reach out via phone or email. We’re here to help!