Canada mortgage rules changing to help buyers [Video]

 – Canadian Finance Minister Chrystia Freeland on Monday announced changes to some mortgage rules as part of an effort to make housing more affordable, a critical political issue that has hurt Prime Minister Justin Trudeau and his Liberal government.

Freeland said the government was increasing the cap on insured mortgages to C$1.5 million from C$1 million earlier, which would allow more people to buy a house with the minimum down payment already required of five per cent.

Previously, Canadians who do not pay at least a fifth of the cost of the house as a down payment need to take out mortgage insurance, but the insurance was available only for homes priced at C$1 million or less. That limit is now C$1.5 million.

In addition, purchasers will be able to take out loans for a 30-year period if they are first-time home buyers or if someone is buying a newly built house, Freeland said. Earlier, the …