new changes: 30 yr mortgages + raise price cap for insured mortgages

Some exciting news for first-time homebuyers and new build purchasers! The government is shaking things up with some new changes to mortgages that could make your path to homeownership a little bit smoother!

So let’s get into the changes. The good, the bad and the ugly.

30 Year Amortizations:
The Good: Good news is this will help those monthly mortgage payments a little easier. By extending your amotization to 30 years this could help reduce payments from $300+ a month (and with the price of groceries I know we could all use that!) Also making it easier for young first time buyer to get their foot in the door.

The Bad: Pretty self explanatory, but it will take you longer to pay of the debt.

The Ugly: This one might hurt. While having lower monthly payments now may feel great (especially in todays world of prices) it will cost you more in the long run. Think about it… If you are taking longer to pay off the debt that interest is sticking around longer and costing you more. While to some they may not care too much about that and just want to have the lower payments now to give some financial relief otherwise want to pay that debt off as soon as possible and in that case i would not reccommend pushing to 30 years.

Last Thoughts… In any situation, it is best to discuss all your options with a trusted mortgage advisor who will not only look out for what is best for you but what your end goal is in figuring out the best situation for you. If you are looking for a mortgage broker headover to my TRUST MORTGAGE ADVISOR page and any them would be happy to assist you.

Insured Mortgage Price Cap Increase:

This was wayyyyy over due! Especially for those navigating high-priced markets like Toronto and Vancouver! The insured mortgage price cap has jumped from $1M to $1.5M!

The good: This was wayyyy overdue in my opinion. With most detached homes in our area all above the $1m mark this will help those that want to move up but don’t quite have the 20% equity built up yet.

The ugly: None! This is a great new change and if anything I would change… except maybe increased it 5 years ago!

Your dream home might be closer than you think! 🏠💭 #HomeBuying #MortgageNews #FirstTimeHomeBuyer #RealEstate #Toronto #Vancouver #HomeSweetHome