30-year mortgage rules: What changes today? [Video]

New mortgage rules from the federal government are now in effect.

As of Aug. 1, buyers purchasing newly-built homes will now have 30 years to pay off a mortgage instead of 25. The change was announced in April’s federal budget as a measure to help tackle the housing crisis.

Will it make a difference?

CTV’s Patricia Boal spoke about the new 30-year mortgages available for some first-time homebuyers with Manon Fredette, a real estate agent at RE/MAX Absolute Walker Realty.

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The interview below has been lightly edited for clarity.

Patricia Boal: It’s a very specific category, but will these 30-year amortizations make a difference?

Manon Fredette: I believe that it can definitely make a difference for first-time homebuyers. Obviously, this is who the program is targeting. The idea of just having extra cash flow in their pockets at the end of each month will definitely help every household in Canada.

Boal: Certainly the deputy prime minister is …