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By Sydney Chisholm

amortization

30-year amortization opens doors for first-time home buyers: Kamloops broker

Sep 16, 2024 | 7:00 PM

OTTAWA – On Monday (Sept. 16), the federal government announced an expansion on the 30-year amortization program that came into effect on August 1.

During a news conference, Finance Minister Chrystia Freeland announced that, starting Dec.15, all first-time homebuyers and anyone buying a newly-built home would be eligible for a 30-year mortgage.

Right now, only first-time homebuyers purchasing a new build are eligible for the program.

Local mortgage broker Tara Sales says most first-time homebuyers aren’t able to buy a new home, so the current amortization program hasn’t helped many Canadians.

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“In my years as a mortgage broker, I have helped one [first-time buyer] buy a brand new home,” said Sales, “so it doesn’t really open up a whole lot.”

She said the new expansions to the program will do a lot for young buyers looking to enter the market.

“It’s definitely going to open up a whole lot of doors for people,” said continued, “because adding five-year amortization can make a huge difference either in your qualifying power or your monthly payment if you’re still trying to keep your monthly payments down.”

In addition to the 30-year amortization expansion, the federal government also increased the price cap from $1 million to $1.5 million for insured mortgages.