Canada to allow 30-year amortization for first-time buyers’ mortgages on new homes

by

The Canadian Press

The federal government will allow 30-year amortization periods on insured mortgages for first-time homebuyers purchasing newly built homes.

Finance Minister Chrystia Freeland made the announcement in Toronto today, saying it would take effect Aug. 1. 

An employee works on a modular home component at NRB Modular Solutions in Calgary, Friday, April 5, 2024. The Canadian government will allow 30-year amortization periods on insured mortgages for first-time homebuyers purchasing newly built homes. THE CANADIAN PRESS/Jeff McIntosh

The Canadian Home Builders’ Association has advocated for longer amortization periods, saying five more years would help with affordability and spur more construction.

Freeland also said the government will nearly double — to $60,000 — the amount first-time homebuyers can withdraw from RRSPs to buy a home.

That’s up from $35,000, to take effect April 16, the day the federal budget is set to be released.

People who make such withdrawals between Jan. 1, 2022, and Dec. 31, 2025, are also getting more time to begin repayment — up to five years in total rather than two. 

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