Experts warn changes to mortgage rules could drive up home prices [Video]

Some mortgage professionals are sounding the alarm over the federal government’s latest mortgage rule changes – and the costs that come with them – for first-time homebuyers.

On Monday, Finance Minister Chrystia Freeland announced a higher cap on insured high-ratio mortgages from $1 million up to $1.5 million.

First-time buyers will also be eligible for 30-year amortization mortgages for any type of home, up from the previous 25-year limit.

“This allows people that are in those areas, that are looking to buy over $1 million, a little bit more leverage,” Mortgage Agent Amanda Lawson told CTV News.

According to the government, the move will make it easier for Canadians wanting to get into home ownership.

Victor Tran, a mortgage and real estate expert with RATESDOTCA, said it might not be that easy.

“This kind of opens up a bigger segment of the market for some home purchasers, but of course, …