Ottawa to expand 30-year amortizations, raise insured mortgage cap – National [Video]

The Liberal government on Monday announced proposed changes to the Canadian mortgage market, expanding the availability of 30-year amortizations and raising the cap on insured mortgage products.

First-time homebuyers, as well as those purchasing new builds, will soon be able to take out insured mortgages with a 30-year amortization, up from the typical 25-year payback period.

Additionally, the Liberals are raising the price cap for taking out insured mortgages to $1.5 million compared with the previous bar of $1 million.

Both proposed changes would go into effect on Dec. 15.

Deputy Prime Minister and Minister of Finance Chrystia Freeland made the announcements on Monday in Ottawa where members of Parliament are reconvening for the start of the fall sitting in the House of Commons.

She positioned the move as helping Canadians to afford a first home.

“It is going to put the dream of home ownership in reach for more young Canadians,” she told …