Ottawa to Allow 30-year Amortizations for First Time Buyers' Mortgages on New Homes By Scott WestlakeApril 12, 20240 Back to Home Advocates are applauding Ottawa's decision to extend the amortization period on insured mortgages for specific homebuyers, viewing it as a positive step toward making homeownership more attainable. Finance Minister Chrystia Freeland announced the extension to 30 years for insured mortgages on newly built homes, effective August 1st. While this move is seen as beneficial, there are calls to expand this policy to all Canadians purchasing homes, irrespective of whether they are new builds or existing properties. Mortgage Professionals Canada CEO Lauren van den Berg hails the change as beneficial for first-time homebuyers, emphasizing the need for further measures to enhance homeownership opportunities for all Canadians. Concerns have been raised regarding the effectiveness of the change, particularly concerning eligibility criteria and the prevalence of properties priced beyond the insured mortgage limit in major cities like Vancouver and Toronto. However, the Canadian Home Builders' Association views the announcement as a significant development that could stimulate construction and alleviate pressure on the rental market. Freeland also announced an increase in the RRSP withdrawal limit for first-time homebuyers to $60,000, effective April 16th. These changes aim to address the challenges faced by prospective homeowners in saving for down payments and provide relief for existing homeowners through the Canadian Mortgage Charter amendments. Back to Home #FTHB #firsttimehomebuyer #mortgagenews #insuredmortgage #newbuild #marketupdate