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A Flury of Beneficial Mortgage Rule Changes Heading into 2025!

After almost two decades of policy tightening, the Federal government has implemented a number of changes to make mortgages more affordable and attainable. While this blog does not cover all the changes, it provides and overview of some of the most impactful changes along with applicable links to access additional information.
Should you have any questions, please reach out to and Outline Financial mortgage agent, as we are on standby to help (hello@outline.ca / 416-536-9559)

Recent or Upcoming Mortgage Rule Changes:

1) Purchase Price Cap Increase for Insured Mortgages (Effective Now)

Homebuyers purchasing an owner-occupied property, with less than a 20% down payment, can now purchase up to $1,499,999 (previous cap was $999,999).

Sample Impact – Prior to the change, a buyer looking to purchase for $1,250,000 would require a minimum down payment of $250,000. The minimum down payment has now been reduced to $100,000 given this change.

Minimum Down Payment Calculation – the minimum down payment required is calculated as 5% on the first $500,000, and 10% on the remainder up to a $1,499,999.99 purchase price. Any purchase price $1,500,000 and above will require a 20%+ down payment.

Links for more details:

2) 30-Year Amortization for Insured Mortgages – First Time Homebuyers (Effective Now)

First-time homebuyers purchasing an owner-occupied property, with less than a 20% down payment, can now select up to a 30-year amortization to lower their monthly payments (previous cap was 25-year amortization).

Sample Impact – By extending the amortization from 25 to 30 years, monthly payments may be reduced by approximately 10%. However, it is important to remember that the trade-off is a longer mortgage (increases from 25 year to 30 years to pay it off).

A First Time Homebuyer is defined by meeting one of the following criteria:

  • The borrower has never purchased a home before; OR
  • In the last 4 years, the borrower has not occupied a home as a principal place of residence that either they themselves or their current spouse or common-law partner owned; OR
  • The borrower recently experienced the breakdown of a marriage or common-law partnership.

Links for more details:

3) 30-Year Amortization for Insured Mortgages – New Construction (Effective Now)

Homebuyers purchasing an owner-occupied new construction property, with less than a 20% down payment, can now select up to a 30-year amortization to lower their monthly payments (previous cap was 25-year amortization).

Sample Impact – By extending the amortization from 25 to 30 years, monthly payments may be reduced by approximately 10%. However, it is important to remember that the trade-off is a longer mortgage (increases from 25 year to 30 years to pay it off).

Links for more details:

4) Secondary Suite Refinancing Up to 90% Loan-to-Value (Effective Jan 15, 2025)

To help owners add secondary suites, i.e., basement apartments, laneway homes, etc., to their owner-occupied property, borrowers will be able to access a mortgage of up to 90% (previous cap was 80%) of the post-renovation value of their home up to $2 million, and amortize the mortgage over 30 years.

Links for more details:

5) Low Rate Loan (Effective Early 2025)

Starting in early 2025, the Canada Secondary Suite Loan Program will double the loan limit from $40,000 to $80,000, making it easier for owner occupied homeowners to finance the creation of rental units such as basement suites or laneway homes. While more details are expected, loans are expected to be available with a 2% interest rate and 15-year term.

Links for more details: