Partner Update

September 30th, 2024

 Just back from a few weeks of vacation and checking in with updates on some very important changes. On September 16th, the federal government announced that they would be increasing the cap on insured mortgages and expanding 30 year loans to more buyers. 

 High ratio insured mortgages previously maxed out at a $1,000,000 purchase price which meant that a buyer purchasing a home for $1,000,000 or greater would be required to put down 20% or greater to qualify. They are raising this limit to $1,500,000. This means that borrowers buying under $1,500,000 will have access to high ratio financing with less than 20% down, subject to qualification. 

 Earlier this year, the government had announced that first time buyers on high ratio insured purchases for new construction homes would have access to 30 year amortizations. The fact that they stipulated only for new construction homes was puzzling and made little sense. They have announced that all first time buyers can now access 30 year amortizations, making it easier to qualify. These changes are to take effect December 15th, 2024.

 Interest rates have been trending downward over the past month. The Bank of Canada has reduced the prime lending rate three times by a total of 0.75% so far this year. Current median projections for the prime lending rate have rates falling another 1.25% to 1.5% by the end of 2025. Fixed rate for 3, 4 and 5 year terms are down sharply over the past month.

Please touch base with questions or if there is anything that I can do to further support you or your clients.

Questions?

Rob Cagnin - Mortgage Broker

rob@robcagnin.ca, 905-634-6111x113

Zack Kern - Mortgage Agent

zack@robcagin.ca, 905-634-6111x115

Indi Mortgage

184 Plains Road East, Burlington ON

L7T 2C3

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