Ottawa Loosens Mortgage Rules, Expanding 30-Year Amortizations and Raising Insured Mortgage Cap

Finance Minister Chrystia Freeland has announced two major changes to the federal mortgage policy, increasing the cap on insured mortgages to $1.5 million from $1 million, and expanding eligibility criteria for 30-year mortgage amortizations to encompass first-time homebuyers. Both changes are to be put in place as of Dec. 15, Freeland told reporters during a Sept. 16 press conference. Raising the insurance threshold to $1.5 million aims to help first-time homebuyers in urban areas where home prices often exceed $1 million, Freeland said. Buyers will be able to qualify for an insured mortgage with a down payment of less than 20 percent. The current price ceiling of $1 million on insured mortgages dates back to 2012, Freeland said....