Insured 30 Year Amortization for First Time Homebuyers

The Federal Government has proposed numerous measures to support home affordability. Effective August 1st, 2024, First Time Homebuyers purchasing New Construction properties may qualify for a 30-year amortization! This Insured Program provides an excellent opportunity for First Time Homebuyers to enter Canada’s housing market by improving affordability and helping them qualify as new homeowners.

First Time Homebuyer’s must meet one of the following definitions:

1. The borrower has never purchased a home before, OR
2. 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
3. The borrower recently experienced the breakdown of a marriage or common-law partnership.

Details of the program:

·  Insured loans only, 80.01-95% LTV

·  New submissions received on or after August 1, 2024

• Existing applications resubmitted on or after August 1, 2024, and funds have not been advanced to the lawyer

·  At least one borrower to be a FTHB, defined as above.

·  At least one borrower must occupy the property

·  Eligible Properties:

• Available for 1 – 4 Units
• Owner Occupied or Partially Owner Occupied
• Newly built homes and condos ONLY

·  Insurer Premium – surcharge of 0.20% applicable to loans where amortization is >25 years (see chart below)

·  Eligible loan type – Purchase, Purchase Plus Improvement, Port/Replacement

·  Ineligible loan type – Small Rental and Secondary Home Programs

Insurance Premiums: