VANCOUVER (September 16, 2024) – The Canadian Mortgage Brokers Association – British Columbia (CMBA-BC) is pleased to support today’s announcement by the Deputy Prime Minister and Minister of Finance Chrystia Freeland that will increase the price cap on insured mortgages from $1million to $1.5million as well as expand eligibility for 30-year mortgage amortizations to a greater number of Canadians. Both will be effective as of December 15, 2024.
CMBA-BC and its sister organization CMBA National have consistently called for these changes for several years, including after the Federal government first announced 30-year amortizations for a small portion of first-time homebuyers which the industry indicated was not broad enough to make a difference.
“We are pleased to see the Federal government has finally listened to our advice and expanded eligibility of 30-year mortgage amortizations to include all first-time homebuyers as well as buyers of new build homes,” said Rebecca Casey, President of the CMBA-BC. “Coupled with a trend of interest rate cuts, this will help first-time homebuyers expand their purchase eligibility for a far greater number of homes across British Columbia.”
British Columbians have clamoured for real changes to address mortgage eligibility policy, having felt squeezed out of almost every market in British Columbia and indeed across Canada. CMBA-BC has amplified those asks and expressed a sense of urgency in seeing changes that will actually make a difference carried out.
“The announcement of an increase in the price cap for insured mortgages to $1.5million will also provide additional flexibility for homebuyers as they will not need to make a 20% downpayment for an additional $500,000 in purchase price,” added Casey. “This reflects the lack of a change in this policy in over ten years and will finally provide more options to homebuyers on how to place a downpayment on their future home..”
While these changes will start to be felt and make a difference into early 2025, CMBA-BC will continue to further advocate for changes that support homebuyers and to give British Columbians support in accessing the housing market.
