Deputy Prime Minister highlights boldest mortgage reforms in decades to unlock homeownership for more Canadians
News release
October 10, 2024 – Toronto, Ontario – Department of Finance Canada
Every Canadian deserves to be able to rent or buy their home. To help more Canadians, especially younger generations, access a home that suits their needs, we are delivering significant new measures that reflect the realities of the current housing market.
Today in Toronto, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, highlighted how the government’s bold mortgage reforms will make it more affordable to buy a home and unlock the dream of homeownership for more Canadians.
To make it easier for homeowners to add secondary suites, such as basement rental apartments, in-law suites, and laneway homes, the federal government is reforming mortgage insurance rules to allow refinancing to help cover the costs of building secondary suites. Starting January 15, 2025, homeowners will be able to refinance their insured mortgages to access the equity in their homes and help pay for the construction of a secondary suite. This will add much needed gentle density to our neighborhoods and help tackle the housing shortage.
To make it easier to buy a home with a smaller downpayment, the federal government is increasing the $1 million price cap for insured mortgages to $1.5 million, effective December 15, 2024. This means that more Canadians will be able to qualify for a mortgage with a downpayment below 20 per cent, making it possible for more Canadians to get those first keys of their own.
To lower monthly mortgage payments, the federal government is expanding 30 year amortizations to all first-time homebuyers and to all buyers of new builds, effective December 15, 2024. By offering lower monthly mortgage payments to all first-time buyers and buyers of new builds, more Canadians, especially younger generations, will be able to buy a home.
These mortgage reform measures build on the strengthened Canadian Mortgage Charter¸ announced in Budget 2024, which allows insured mortgage holders to switch lenders at renewal without being subject to another mortgage stress test. Soon, all homeowners with mortgages renewing will be able to shop around for the best rate. And for first-time buyers getting 30 year mortgages this December, you’ll be able to find the lowest rate every time you renew.
The federal government has the most ambitious housing plan in Canadian history—a plan to build 4 million new homes. This is about building a country where every generation can reach the dream of homeownership.
Quotes
“Building on our action to help Canadians save for a downpayment, last month, we announced the boldest mortgage reforms in decades. These reforms, combined with this week’s action to make it easier to add secondary suites, will make it more affordable to own a home and add much needed gentle density. Starting December 15, more Canadians can apply for mortgages with smaller downpayments and lower monthly payments.”
– The Honourable Chrystia Freeland,
Deputy Prime Minister and Minister of Finance
Quick facts
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The federal government’s housing plan—the most ambitious in Canadian history—will unlock nearly 4 million more homes to make housing more affordable for Canadians.
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The strengthened Canadian Mortgage Charter, announced in Budget 2024, sets out the expectations of financial institutions to ensure Canadians in mortgage hardship have access to tailored relief and to make it easier to buy a first home.
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In addition to recent mortgage reforms, the federal government is:
- Launching a new Canada Secondary Suite Loan Program to enable homeowners to access low-interest loans to help with the cost of renovations. More details will be announced before the end of the year.
- Helping over 750,000 Canadians save with a Tax-Free First Home Savings Account. Canadians can contribute up to $8,000 per year, and up to a lifetime limit of $40,000, towards their first downpayment. Tax-free in; tax-free out;
- Allowing Canadians to withdraw up to $60,000 from their Registered Retirement Savings Plan (RRSP) for their first downpayment. By increasing the Home Buyers’ Plan limit from $35,000 to $60,000 in Budget 2024, first-time homebuyers can now access up to $25,000 more for their downpayment to buy or build a home. This can be combined with savings through the Tax-Free First Home Savings Account.
- Advancing a Renters’ Bill of Rights and a Home Buyers’ Bill of Rights, to protect renters from unfair practices, make leases simpler, and increase price transparency; and help make the process of buying a home, fairer, more open, and more transparent.
Associated links
- Budget 2024: Fairness for Every Generation
- October 8, 2024: Deputy Prime Minister announces new actions to build secondary suites and unlock vacant lands to build more homes
- September 24, 2024: Government announces mortgage reform details to ensure Canadians can access lower monthly mortgage payments by December 15
Contacts
Media may contact:
Katherine Cuplinskas
Deputy Director of Communications
Office of the Deputy Prime Minister and Minister of Finance
Katherine.Cuplinskas@fin.gc.ca
Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000
General enquiries
Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca
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