Calling all First Time Home Buyers! Did you know that as of August 1, 2024, you will be eligible for a 30 year Amortization when you have less than 20% down? Today the maximum time frame is 25 year amortization so this is a big help for affordability.
The example below is based on a new purchase price including GST of $816,900, with the minimum down payment and a rate based on 5.34% for a 3 year fixed rate.
To get a 30-year insured amortization:
- At least one of the borrowers on the application must be a first-time home buyer, meaning they meet one of the following criteria:
- The borrower has never purchased a home before;
- In the last 4 years, the borrower has not had a principal residence that either they or their current spouse or common-law partner owned; or,
- The borrower recently experienced the breakdown of a marriage or common-law partnership.
- The new home must not have been previously occupied for residential purposes. (Note: This does not exclude new condos that have had an interim occupancy period.)
- The mortgage must be high-ratio insured (20% down payment or less)
- This measure applies only to mortgage applications on or after August 1, 2024
- The difference in the insurance premium is minimal and can be added to the mortgage. There is a .20% premium added to the current insurance premium
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A 30 year Amortization results in roughly $200-$300 per month in a lower payment depending on mortgage amount
Like any new government initiated program, details will unfold as we get closer to the roll out date and we will continue to report on it
If you would like more information or to see how you specifically can benefit from this, please reach out to our office.