The Canadian mortgage landscape is about to see two significant updates – one of which is very important for Edmonton homebuyers:
- 30-Year Amortizations for New Builds
Starting December 15th, buyers can choose a 30-year amortization on newly built homes, even if they’ve previously owned a property. This change offers more flexibility for those looking to reduce monthly payments. - Higher Insured Mortgage Limits
The insured mortgage limit is increasing from $1 million to $1.5 million. While this change may not significantly impact Edmonton homebuyers, it could make higher-priced homes more accessible in other parts of Canada.
Why Wait Until December 15th to Sign Purchase Contracts?
Both of these new rules go into effect on December 15th, so buyers should wait until then to sign purchase contracts if they want to take advantage of these updates. Until the 15th, 25-year amortizations and the current $1 million insured limit remain in place.
What Does This Mean for Edmonton Buyers’ Mortgages?
In Edmonton, the increased insured limit might not make a big difference due to the lower average home prices compared to cities like Toronto or Vancouver. However, the 30-year amortization rule could benefit buyers looking for new builds and seeking more affordable monthly payments.
Is a 30-Year Mortgage Amortization Right for You?
Choosing a longer amortization means lower monthly payments but higher overall interest costs. It’s essential to weigh the pros and cons to see if this option aligns with your financial goals. If you have any questions about the path to homeownership that is right for you, please reach out at 780-720-2490.
If you’re looking to get pre-approved for a mortgage to buy a property in Edmonton, fill out my online application. I’m here to help you every step of the way.
Read more about these new rules on the Government of Canada website.
About Jason Scott, Edmonton Mortgage Broker
Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’ll be your trusted partner who will help you get the right mortgage for your family home or Investment property. I’m Jason Scott, and I’ll be your Mortgage Broker in Edmonton.
