Canada Opens Mortgage Market to 30-Year Loans for Homebuyers
- The measure will allow first-time buyers to reduce payments
- Slow pace of building leaves Canada short of needed supply
The current 25-year limit applies to insured mortgages — loans in which the homebuyer is putting down less than 20% of the purchase price.
Photographer: Isabella Falsetti/BloombergThis article is for subscribers only.
Canada will relax the rules on mortgages to allow first-time buyers to take out 30-year loans when they purchase newly built homes.
The change to regulations on insured mortgages come into effect on Aug. 1, Finance Minister Chrystia Freeland said. It’s a move that’s primarily aimed at winning over younger voters who’ve been shut out of the housing market, or squeezed by soaring prices and high interest rates.