Detailed impact analysis and policy breakdown
Expanded eligibility for 30-year amortizations to all first-time buyers and all new construction buyers.
The federal government has extended 30-year mortgage amortizations (previously capped at 25 years for insured mortgages) to all first-time homebuyers and all buyers of new construction homes.
Stretching a loan from 25 to 30 years lowers the monthly payment by roughly 8-10%. For a $500,000 mortgage at 4.5%:
This lowers the qualifying income required, bringing more buyers into the market.
High Impact for Pre-sales: By creating a specific exemption for "new builds," the government is trying to incentivize developers to build more. If buyers can afford improved monthly payments only on new homes, demand for pre-construction condos and suburban subdivisions will rise.
While monthly payments drop, the total interest paid rises drastically. On that same $500k mortgage, adding 5 years costs an additional $50,000+ in interest over the life of the loan. It is a tool for accessibility, not wealth creation.