If you are buying your first home or you are purchasing a newly built home, you may now be eligible for an insured mortgage with a 30 year amortization. That extra five years can lower the payment compared to a 25 year schedule and improve your qualifying room, all while keeping the protections of mortgage default insurance.
What changed
- As of December 15, 2024, Canada expanded 30-year amortizations for first-time buyers and to any buyer of a newly built home. Earlier in 2024 the program launched for first-time buyers of new builds.
- The insured price cap also moved from 1.0 million to 1.5 million, which means more homes are eligible for insurance with less than 20 percent down. The familiar minimum down payment still applies. Five percent on the first 500,000 of price and ten percent on the remainder up to the cap.
Who qualifies
You can access a 30 year insured amortization if either of the following is true
- At least one borrower is a first-time homebuyer under the federal definition, or
- The property is a newly built home that has not been occupied before.
You must still meet standard insured mortgage requirements like minimum down payment, income and debt service ratios, and property eligibility. Insurance is not available for homes priced at or above 1.5 million.
What counts as a newly built home
A home that is newly constructed and has never been lived in qualifies as newly built. This includes houses, townhomes, and condos delivered brand new by a builder.
Insured versus uninsured
- Insured mortgages are for purchases with less than 20 percent down and now allow 30 years for the groups above.
- Uninsured mortgages already allow 30 year amortizations at many lenders when you put 20 percent or more down. The change here is that first-time buyers and new build buyers can access 30 years with insurance and its often lower rates.
How the payment can change
A longer amortization spreads the principal over more years, so the monthly payment is lower than it would be at 25 years. The tradeoff is that you pay more interest over the life of the loan. For many first-time buyers, the lower payment is what makes the budget work today. Rates and exact savings depend on the lender and term you choose.
Practical scenarios
First-time buyer purchasing a resale home
- Eligible for a 30 year insured amortization, subject to income and down payment rules.
Buyer who is not first time purchasing a new build
Also eligible for a 30 year insured amortization because the home is newly built.
Homes at or above 1.5 million
Not eligible for insured mortgages. You would need at least 20 percent down and the loan would be uninsured.
Down payment quick guide up to the new cap
- Five percent of the first 500,000 of the purchase price
- Ten percent of the portion from 500,000 to 1,499,999
- Insurance is not available at 1.5 million or more
FAQs
Do I have to be both a first-time buyer and purchasing a new build?
No. You qualify if you are a first-time buyer or if the home is newly built. Either path works.
Does this apply across Canada, including Alberta?
Yes. It is a federal insured mortgage policy available through the mortgage insurers that lenders use across Canada.
Will my stress test change?
The usual qualifying rules still apply for insured purchases. Separately, if you are renewing and simply switching lenders with no changes to loan size or amortization, there is now an exemption that makes switching easier at renewal.
How can we help?
If you want to check whether your purchase or pre sale qualifies, share the home type, estimated price, your down payment, and your target closing date. The Mortgage Centre in Lethbridge can map out eligibility and an apples-to-apples comparison of 25 versus 30 years with current lender options.