New Canadian Mortgage Rules For 2024 Boosting First-Time Buyer Opportunities 

One of the most impactful changes is the increase in the CMHC-insured mortgage limit from $1 million to $1.5 million. This means buyers can now purchase more expensive properties with a smaller down payment. For example, a buyer purchasing a $1.2 million home will now need only about $95,000 as a down payment, compared to the previous $240,000 requirement.

Who Benefits: This rule particularly helps buyers in high-cost markets like Toronto and Vancouver, where the majority of homes are priced well above $1 million

To make monthly payments more affordable, first-time homebuyers will have the option to extend their mortgage amortization period to 30 years. While this reduces the monthly financial burden, it does increase the total interest paid over the life of the loan.

Who Benefits: First-time buyers with lower income or tight budgets will have more manageable monthly payments, making homeownership more attainable

Another major change allows homeowners with insured mortgages to switch lenders at the time of renewal without having to go through the stress test again. Previously, switching lenders meant a requalification, often locking homeowners into their current lender due to higher qualification standards.

Who Benefits: Homeowners looking to secure better rates without the hassle of requalifying, especially those who may not meet the current stress test requirements

Thanks to these changes, the purchasing power of first-time buyers will likely increase by an estimated 9%, equivalent to a 90-basis-point reduction in interest rates. This could enable buyers to purchase homes in higher price ranges than before.

Who Benefits: Primarily first-time homebuyers, who often rely on insured mortgages, as this group will feel the most impact from the purchasing power boost