Canada Loosens Mortgage Rules to Aid First-Time Homebuyers
• Canada will allow first-time homebuyers to take out 30-year mortgages on newly built homes, up from 25 years, starting August 1st. This will lower monthly payments.
• The change aims to help younger buyers afford homes amid soaring prices and rates. Canada has a large housing shortage currently.
• Buyers will be able to pull more money from retirement savings - up to $60,000 from $35,000 - to use for a home down payment.
• The 30-year mortgages only apply to insured mortgages requiring less than 20% down payment. Higher down payments allow uninsured mortgages with flexible terms.
• Economists say the impact will be limited overall and not drastically influence home prices or demand.