Mortgage Updates: Big Changes Coming in December 2024
If you’ve been thinking about getting into the housing market—or know someone who has—you'll want to hear about these important changes in the mortgage landscape that could make homeownership more affordable. Starting December 15, 2024, two major updates are coming that could help buyers get into the market sooner than expected!
1. Insured Mortgage Cap Increase to $1.5 Million
One of the most significant updates is the increase of the insured mortgage cap to $1.5 million, up from the current $1 million. This change allows more buyers to qualify for a mortgage with less than a 20% down payment. For those looking at higher-priced homes, this opens the door to greater purchasing power and makes it easier to enter the market without having to come up with a massive down payment upfront.
2. 30-Year Amortizations for More Buyers
Previously, 30-year amortizations were only available to first-time homebuyers purchasing new-builds, but now, all first-time buyers—whether purchasing a re-sale property or a new-build—can take advantage of this extended amortization. This means lower monthly payments and more breathing room in your budget. The change is designed to reduce the financial burden and make homeownership more affordable, especially for those entering the market for the first time.
3. Bank of Canada Rate Drop
On top of these new mortgage measures, the Bank of Canada has just dropped the overnight rate by 50 basis points, bringing it down to 3.75%. This could signal lower interest rates on mortgages, making it even more affordable to buy or refinance a home. Keep an eye on the next Bank of Canada announcement on December 11th for any further changes that might influence the market.
With these updates in mind, if you’ve been sitting on the sidelines, now’s the time to act—especially if you’re working with a tight budget. We won’t see the effects of these interest rate cuts immediately, so don’t let the market outpace you. Acting early could give you an edge before competition heats up.
If you’re considering buying or refinancing, these new measures could make homeownership more attainable than you thought. Reach out if you have any questions or want to discuss your options!
Charlene Weber
charlene@newpurveyors.com
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