Things are getting easier for First Time Home Buyers (FTHB) to qualify and have more flexibility with payments when getting into the market.  Effective Dec. 15, 2024, FTHB can now purchase a home up to $1.5M with an insured mortgage.  This was previously capped at $1M and as home values in the Vancouver market have continued to go up drastically over the past 5 years, this has put a lot of properties out of reach for buyers that want to get into a detached home.  This now allows buyers to have less than 20% down payment.  Previous rules required home buyers to have 20% down or more when purchasing over $1M.

Another change effective next week is that FTHB can now get a 30 year amortization as well when taking an insured mortgage.  Previously the longest amortization buyers could get with an insured mortgage was 25 years.  This helps with affordability as well as qualification.  This change is also available to those purchasing new construction properties as their principal residence whether you are a first time buyer or not.  You can now take an insured mortgage up to $1.5M on a newly constructed home and get the 30 year amortization.

We have 3 insurers in Canada, CMHC, Sagen and Canada Guaranty (CG). Information is starting to come out from all banks and insurers on these policy changes.  Here’s a snapshot of the changes:

30yr amortizations:

• All buyers of newly built properties can have a 30yr amortization on an insured mortgage
• First time home buyers can take advantage of a 30yr amortization on an insured mortgage
• Only one applicant on the file needs to be a FTHB to qualify for a 30yr amortization
• What defines a FTHB? Read more HERE:

Down payment requirements are the same for insured mortgages, it is calculated as:

5% of the first $500,000, then 10% on the remaining amount.  Example on a purchase price of $1.1M

$25,000 (up to $500,000)

$60,000 (remaining $600,000)

$85,000 Minimum Down Payment

Total Minimum Down Payment on a purchase price of $1.1M is $85,000

For any purchase price over $1.5M, the minimum down payment is 20% of the purchase price.

For more information or to discuss a specific file, please reach out to our team at support@primexmortgages.com or 604-552-6190