As we enter 2025, the Canadian mortgage market is undergoing transformative updates aimed at addressing housing affordability, enhancing accessibility, and empowering both homeowners and buyers in an ever-changing market.
These changes promise to bring new opportunities, especially for first-time buyers, families, and property investors. Let’s explore the first set of key changes and how they can benefit you.
One of the most significant updates for 2025 is the elimination of the federal mortgage stress test for insured and uninsured mortgage transfers. Previously, homeowners had to requalify under the stress test even if they were not increasing their loan amount. This additional step often discouraged borrowers from seeking a better mortgage.
How This Change Helps You:
This policy fosters a more competitive lending environment, ensuring that lenders offer more favourable terms to retain or attract borrowers, ultimately benefiting consumers.
For homeowners seeking to maximize their properties, insured refinancing in 2025 allows them to build up to three independent add-on rental units in owner-occupied homes. This change addresses Canada’s rental shortages while offering significant financial benefits to homeowners.
This initiative empowers homeowners while contributing to local rental supply in high-demand areas like Chilliwack, BC.
First-time buyers and those purchasing newly built homes now have access to extended 30-year amortization periods. This change applies to applications submitted after December 15, 2024, and aims to make homeownership more achievable.
This update makes homeownership more accessible and supports the growth of Canada’s housing inventory, benefiting the market as a whole.
Stay tuned for Part 2, where we’ll discuss the increased insured mortgage price cap and revised down payment rules and how these changes cater to diverse needs, including first-time buyers, self-employed individuals, and investors.
Entrust Mortgage is more than just a broker; we are your partner in growth.
Our team is committed to providing solutions that meet your current needs and pave the way for future success.
