Interest Rates are dropping! Are you thinking about Buying or Selling? Here are some key mortgage changes in Ontario in 2024:
30-year amortization for first-time homebuyers of new builds: As of August 1, 2024, first-time homebuyers purchasing new builds can now stretch their mortgage payments over 30 years instead of the standard 25 years.
Increased insured-mortgage price cap: Effective December 15, 2024, the insured-mortgage price cap will increase from $1 million to $1.5 million. This means more Canadians will be able to qualify for a mortgage with a down payment below 20%.
Removal of stress test for uninsured renewal switches: Starting November 21, 2024, insured mortgage holders will be able to switch lenders at renewal without having to undergo another stress test.
LTI cap on uninsured mortgages: In the first quarter of 2025, banks will have a cap placed on the number of new uninsured mortgages in their portfolio that are more than 4.5 times a borrower’s annual gross income.
The next interest rate announcement is scheduled for October 23, 2024.
Now is the BEST time to work with a realtor as we know the day-to-day variabilities Ottawa’s resale market is currently experiencing. Contact Ottawa’s Best Real Estate Agents Brooke & Jenna if you have any questions or for a free comprehensive comparative market analysis. We are always happy to help!
