If you’re considering buying a home in Kelowna, Canada’s recent mortgage reforms could help. The government has rolled out new policies aimed at making homeownership easier and more affordable—especially helpful as home prices and interest rates remain top of mind for many Canadians.
Here’s a simple breakdown of the biggest changes and what they mean for you:
Higher Cap for Insured Mortgages
One of the biggest updates is an increase in the insured mortgage cap from $1 million to $1.5 million. In the past, if you wanted to buy a home priced over $1 million with less than a 20% down payment, you couldn’t get an insured mortgage. Now, with this higher cap, more people can get an insured mortgage for a wider range of homes. This is especially helpful in high-demand areas like Kelowna, where home prices often hover around or above that mark.
Longer Amortization for First-Time Buyers
The government is also allowing 30-year amortizations (instead of 25) for first-time homebuyers and anyone buying a new-build home. This means your monthly payments will be spread out over a longer period, making them smaller and more manageable. So if you’re starting your homeownership journey, this change could be a huge help in making a mortgage fit your budget without breaking the bank.
Easier Switching at Renewal
Good news for current homeowners, too! Under the updated Canadian Mortgage Charter, borrowers can now switch lenders when renewing their mortgage without facing another stress test. This means you’ll have more flexibility to shop around and find better rates or terms without worrying about the hassle of qualifying all over again.
More Affordable Housing on the Horizon
Alongside these mortgage changes, the Canadian government has committed to building millions of new homes. While it’ll take time to see these homes go up, the goal is to ease the housing shortage and bring more affordable options to market, which should ultimately help stabilize prices.
These new policies are designed to make homeownership accessible and affordable for more Canadians, and they could be game-changers in cities like Kelowna. If you’re curious about how these changes could benefit your unique situation, Rampone-Marsh Mortgages is here to help. We can answer your questions, explore your options, and help you understand which of these updates might make the most sense for you.
Visit Rampone-Marsh Mortgages or give us a call to chat about how these mortgage changes might help you in today’s market.
