Throughout this past year, we saw a number of new changes announced in the mortgage industry and housing. Here are a few highlights:

April 1st: Changes to Property Transfer Tax Exemptions

The Province of BC announced increased sliding scales for the property transfer tax exemptions, both for First Time Home Buyers and for new construction. Read more about this on our website HERE and from the province HERE.

April 16th: Increased RRSP Withdrawal Limit under the Home Buyers’ Plan

Previously $35,000, for those eligible, the withdrawal limit under the Home Buyers’ Plan was increased to $60,000. Read more about this announcement HERE and the Home Buyers’ Plan HERE.

August 1st: 30 year Amortization for First Time Home Buyers Purchasing New Construction

In June 2024, the federal government announced that First Time Home Buyers’ purchasing a newly constructed home would have access to a 30 year amortization with less than 20% down payment. Read more about this announcement HERE. Availability of a 30 year amortization with less than 20% down payment has been since further expanded (see below).

November 21st: No Stress Test for Uninsured Mortgage Transfers

Following the February 2024 announcement with regards to no stress test/mortgage qualifying rate (MQR) requirement for insured mortgage transfers, the opportunity has now been applied to uninsured mortgages. This allows for an uninsured mortgage to be transferred to a new lender without having to qualify at the stress test (rate +2%). The criteria for any mortgage transfer is: mortgage amount increase is limited to $3,000, the original registered amortization minus elapsed time applies, only for standalone mortgages, not eligible for stand alone HELOCs.

December 15th: Insured Mortgage Cap Increased to $1.5M

In a surprising move, the federal government announced the insured mortgage cap would be increasing for the first time since 2012 to $1.5M. This means, any home buyer (not just a first time home buyer) can purchase a home for $1.5M with as little as $125,000 for down payment. Previously, a purchase price of $1.5M would have required a down payment of at least $300,000. The goal of this change is to get more Canadians into homes in their local communities without having to continue to save for much larger down payments or relocate to lower priced markets. Read more on this HERE.

December 15th: 30 Year Amortization for all FTHBs AND all buyers of New Construction

In the same press release, the federal government announced the eligibility for 30 year amortization would be extended to both first time home buyers AND all buyers of new construction. While 30 year amortizations do increase the overall interest cost during the lifetime of a loan, it does help bring down monthly payments to help with day to day cashflow and qualification. Read more on this HERE.