Today is A Day for First Time Home Buyers!

Starting August 1, 2024, first-time homebuyers looking at new construction homes will have an exciting new option: a 30-year mortgage! This new rule is designed to make homeownership more affordable by giving buyers more time to pay off their mortgage, which means lower monthly payments.

Here's what you need to know:

Who is a First-Time Homebuyer?

To qualify, you must meet at least one of these criteria:

1. You’ve never bought a home before.

2. In the last 4 years, you haven’t lived in a home that you or your spouse/partner owned as your main residence.

3. You recently went through a divorce or separation.

What is a New Construction Home?

The home you are buying must be newly built. It should not have been lived in before, although new condos with a short interim occupancy are okay.

How Does It Work?

- Mortgage Term: You can now get a 30-year mortgage for newly built homes. This gives you five extra years to pay off your loan compared to the usual 25-year term, which will lower your monthly payments.

- Eligibility: This option is available for high-ratio mortgages (where the loan is more than 80% of the home’s price) on homes you will live in.

- When It Starts: The new rule applies to mortgage insurance applications submitted on or after August 1, 2024. Lenders should start offering these 30-year mortgages from that date.

Why This Change?

The government wants to help more Canadians buy their first home and encourage the building of new homes without creating excess demand in the housing market. This change aims to make homeownership more accessible and fair, especially for younger buyers.

If you're a first-time buyer looking at new construction, this could be a great opportunity to make your dream home a reality with more manageable monthly payments.

If you have any questions or need more information, feel free to DM us, email us at [email protected], or visit our website at www.tonybrar.ca. We’re here to help you with all your mortgage needs!