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Increased Ceiling and Amortization for Insured Purchases of New Construction Homes: What It Means for You

Writer's picture: Lisa BelangerLisa Belanger

Updated: Jan 24

Good news for homebuyers in Canada! Recent changes to mortgage rules have increased the borrowing ceiling and amortization period for insured purchases of new construction homes. As a mortgage broker, I’ve seen firsthand how these updates are opening doors for more Canadians to afford their dream homes—and I’m here to help you navigate these changes.


The New Rules in Brief


Under the updated guidelines, buyers of new construction properties with insured mortgages can now:

  • Borrow up to $1.5 million (up from $1 million previously).

  • Extend amortization to 30 years, instead of the standard 25 years.


This means you can afford a larger purchase price while keeping your monthly payments more manageable.


Increased Insured Mortgage Cap


The maximum price for insured mortgages has increased from $1 million to $1.5 million, opening the door for buyers in higher-priced markets like Toronto and Vancouver to qualify for high loan-to-value mortgage insurance with a smaller down payment. The rules for down payments remain the same:


  • 5% on the first $500,000 of the purchase price

  • 10% on the portion between $500,000 and $1.5 million


For example, buying a $1.5-million home now requires a $125,000 down payment—much less than the $300,000 needed for uninsured mortgages under the old rules.


Expanded 30-year Amortizations


Eligibility for 30-year amortization periods on insured mortgages has been broadened to include all first-time homebuyers and purchasers of new builds, provided the loan-to-value ratio is 80% or higher.


First-time homebuyers must meet criteria such as not having owned a home in the last four years or having experienced a breakdown in a marriage or common-law relationship.


These reforms apply to all high-ratio mortgages on owner-occupied properties or those occupied by a close relative. The government confirmed that existing eligibility criteria for government-backed mortgage insurance will remain unchanged.


Why This Matters


With home prices continuing to rise, these changes can make a significant difference, especially in high-demand areas like Ottawa or Toronto. They provide more flexibility for families who want a home that meets their needs without stretching their budget to the breaking point.


How I Can Help


Understanding how these changes apply to your specific situation can be complex. That’s where I come in:

  • I’ll walk you through the qualification process for an insured mortgage.

  • I’ll explore how the increased ceiling and longer amortization could benefit you.

  • I’ll connect you with lenders offering competitive rates for insured mortgages.


If you’re considering buying new construction, let’s talk. Together, we can determine whether these new rules make your dream home a reality.

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