Dear Reader,

New housing policies came into effect and leaving many Canadians unclear about how their finances have been affected.

“To lower the cost of downpayments, effective today, December 15, 2024, the federal government has increased the $1 million price cap for insured mortgages to $1.5 million. For example, a minimum downpayment on a $1.4 million home would now be up to $165,000 lower. This is helping more Canadians, especially younger generations, get those first keys of their own.

To lower monthly mortgage payments by hundreds of dollars, the federal government’s reform to make 30-year amortizations available to all first-time home buyers and to all buyers of new builds will also come into force today. This will reduce the cost of monthly mortgage payments so that more Canadians can afford a mortgage as they start their career and work their way up the salary ladder.” December 15, 2024 - Ottawa, Ontario - Department of Finance Canada