MIL OSI Translation. Canadian French to English –
Source: Government of Canada – in French 1
The federal government is proposing the most ambitious housing plan in Canadian history, including building 4 million new homes to make housing more affordable for Canadians. This plan will build a fairer Canada for every generation, where everyone can get ahead, get a fair reward for their hard work, and be able to afford to own a home.
September 24, 2024
The federal government proposesthe most ambitious housing plan in Canadian history, which includes building 4 million new homes to make housing more affordable for Canadians. This plan will build a fairer Canada for every generation, where everyone can get ahead, get a fair reward for their hard work, and be able to afford to own a home.
As announced on September 16, 2024, the federal government is expanding eligibility for 30-year amortizations on insured mortgages for first-time and newly constructed home buyers. It is also increasing the price cap for insured mortgages from $1 million to $1.5 million, effective December 15, 2024. The government is releasing parameters today that will allow lending parties and insurers to begin offering mortgages under these reforms starting in December.
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Expanding eligibility for 30-year mortgage amortization for all first-time home buyers and those purchasing newly constructed properties
This measure will apply to borrowing parties who require high loan-to-value (LTV) mortgage insurance in Canada. In addition, the borrowing party’s application must meet the following requirements: The total LTV is 80% or greater; The borrowing party is either a first-time homebuyer or (ii) a newly constructed property.
As the government announced on June 11, 2024, to be considered a first-time home buyer, the borrowing party must meet one of the following criteria: They have never purchased a property before; In the last 4 years, the borrowing party has not occupied a dwelling as their principal place of residence that they or their spouse or common-law partner owned. The borrowing party has recently experienced the end of a marriage or common-law partnership. In this regard, the regulations will follow the approach taken by the Canada Revenue Agency with respect to the Home Buyers’ Plan.
As the government announced on June 11, 2024, to be considered a newly constructed home, the home in question must not have been previously occupied for residential purposes. This requirement is not intended to exclude newly constructed condominium apartments where there has been a period of temporary occupancy.
Price cap increased from $1 million to $1.5 million for insured mortgages
This measure will apply to borrowing parties who require high loan-to-value mortgage insurance in Canada. In addition, the borrowing parties’ application must meet the following requirements: The total loan-to-value ratio is 80% or greater; The value of the eligible residential property on which the loan is secured must be less than $1.5 million; The down payment requirements for the loan are as follows: 5% on the portion of the purchase price up to $500,000. 10% on the portion of the purchase price between $500,000 and $1.5 million.
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Effective date: These measures will apply to mortgage insurance applications that lenders submit to mortgage insurers on or after December 15, 2024. These measures will only apply to high loan-to-value (LTV) mortgages on properties occupied by the borrowing party or a close relative. All other eligibility criteria for government-backed mortgage insurance will continue to apply.
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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure not be perfect.