First-Time Homebuyers Can Now Apply For A 30-Year Mortgage. Is That A Good Thing?

CBC News ~ August 1st, 2024

The 30-year amortized mortgages announced in the 2024 federal budget are kicking in on Thursday.

First-time homebuyers who are purchasing newly built homes can now qualify for a 30-year mortgage, giving them five additional years to pay off an insured mortgage. For other mortgages where default insurance is required, a 25-year amortization limit is still in place.

Deputy Prime Minister Chrystia Freeland touted the changes as a chance to "restore generational fairness" for younger people trying to break into the housing market.

While some have said the changes will lead to lower monthly mortgage payments, opening up the housing market to younger buyers struggling with affordability, some mortgage analysts have cautioned that the new rules won't apply to many people — and that they might cost you more on a long-term basis.

Here's who qualifies for the new rules and what they mean for you.

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