In a recent article published in Le Journal de Montréal titled “30-year mortgages: Ottawa’s new rules will bring many new buyers to Montreal,” John Fucale, Senior Vice-President of Broker Relations at Multi-Prêts Hypothèques, discussed the new mortgage measures set to take effect on December 15.
These new rules will allow first-time homebuyers to take out 30-year mortgages, even with a down payment of less than 20%, an option previously limited to new-build properties. According to Fucale, “these new rules will open up the market to a larger number of buyers in Montreal.” This is particularly relevant for younger buyers with limited savings for a down payment.
In addition, Ottawa has increased the insured mortgage cap from $1 million to $1.5 million. This change could have a significant impact in Montreal neighbourhoods such as Outremont and Plateau-Mont-Royal, where home prices often exceed $1 million. “We are opening up a large pool of buyers, and this could put upward pressure on the Montreal housing market,” he notes.
These changes could also stimulate new home construction in response to rising demand. However, increased demand may also risk overheating the Montreal market.
To maximize the benefits of these new regulations and facilitate your homebuying process, working with a mortgage broker is advisable.