Freeland unveils new housing measures
Canadian Finance Minister Chrystia Freeland unveiled new measures to increase access to government mortgage insurance for homebuyers.
Under Canadian law, homebuyers who put down less than 20 percent of the cost of the home must insure the mortgage. Freeland said Monday the government will raise the ceiling on such mortgages to $1.5 million, from $1 million currently.
The government will also increase maximum amortization of such mortgages to 30 years, from 25 years, for all buyers of new homes. The move expands a measure announced in July that increased the amortization period for first-time home buyers to 30 years.
The most recent moves reverse an earlier drive to tighten the availability of government insured mortgages, which was undertaken amid concern that access to cheaper credit could fuel house price increases.
Outstanding insured mortgages issued by the nation’s chartered banks totaled $427 billion in the first quarter of this year, down from a record $527 billion in 2016, according to Bank of Canada data.