Navigating Canada’s New Mortgage Reforms with GLM Mortgage Group: Part 2
Following our exploration of recent changes to Canada’s mortgage regulations in Part 1, we’ll continue delving into how these new measures can benefit Canadians and insured mortgages. Part 2 covers further mortgage reform details, including the expanded 30-year amortization, the $1.5 million insured mortgage cap, and supporting policies in the Canadian Mortgage Charter, Renters’ Bill of Rights, and Home Buyers’ Bill of Rights. Each initiative provides opportunities for homeowners, first-time buyers, and renters, especially those facing affordability barriers. Let’s examine how these updates can help you achieve your real estate goals and how GLM Mortgage Group can guide you through the process.
1. Government Expands Insured Mortgage Cap and Amortization Options
In recognition of Canada’s changing housing market, the government has made pivotal updates to insured mortgages, addressing two main areas of concern:
- Raising the Insured Mortgage Cap: Effective December 15, 2024, the cap on insured mortgages will increase from $1 million to $1.5 million. This change reflects the reality of higher housing prices in major cities, where entry-level homes often exceed the previous cap. By raising the limit, more Canadians can now secure insured mortgages with lower down payments (less than 20%), making homeownership more accessible.
- Expanding 30-Year Amortization: The 30-year amortization option, which was introduced for first-time homebuyers on August 1, 2024, will soon apply to all buyers of newly built properties, effective December 15, 2024. This extension aims to lower monthly mortgage payments, offering financial relief to homebuyers who may find shorter terms unsustainable.
These updates reflect the government’s ambition to balance home affordability with housing supply—a mission GLM Mortgage Group wholeheartedly supports.
How GLM Mortgage Group Can Help You Leverage the New Mortgage Cap and Amortization
GLM Mortgage Group specializes in helping clients navigate mortgage options. With the new insured mortgage cap, GLM can help you explore possibilities for homes in high-cost areas that may have been previously out of reach. Our advisors understand the complexities of insured mortgages and can assist in identifying the best options based on your down payment and financial situation. For those interested in a 30-year amortization, GLM can show you how this longer-term option can align with your monthly budget and long-term goals.
2. Canadian Mortgage Charter: Protecting Homebuyers’ Rights
The Canadian Mortgage Charter aims to safeguard borrowers and foster a competitive mortgage market. Key components of this charter include:
- No Requalification Requirement: Borrowers with insured mortgages can now switch lenders at renewal without facing a stress test. This ensures that Canadians with insured mortgages can shop for the best rates and products, giving them more options and increased savings.
- Mortgage Hardship Relief: The Charter establishes guidelines for lenders to provide relief to borrowers experiencing financial hardship. This could mean payment flexibility, rate restructuring, or other adjustments to help struggling homeowners avoid foreclosure.
With these protections, the Canadian Mortgage Charter brings increased security to Canadian homeowners. At GLM Mortgage Group, we advocate for borrowers’ rights, ensuring our clients know their options and have access to favorable terms and conditions.
GLM Mortgage Group’s Support for Mortgage Switching and Hardship Relief
For clients looking to take advantage of the new flexibility to switch lenders without requalification, GLM Mortgage Group’s network of lending partners allows us to shop around for competitive rates. Additionally, if you’re experiencing mortgage hardship, we can guide you through relief options offered under the new Canadian Mortgage Charter, helping you navigate lender discussions and maintain stability in challenging times.
3. Renters’ Bill of Rights: Making Renting Fair and Transparent
Canada’s Renters’ Bill of Rights introduces protections to create fairer rental markets. It aims to combat high rent costs and mitigate renter displacement due to “renovictions” (evictions for renovation purposes). Some of its proposed features include:
- Protections Against Unfair Rent Hikes and Evictions: Provincial cooperation is underway to address tenant concerns around rent affordability and unjust evictions. These measures are intended to promote stability and fairness in the rental market.
- Standardized Lease Agreements: By encouraging consistent lease agreements nationwide, the government seeks to clarify tenant and landlord rights, reducing misunderstandings and making the rental process more transparent.
While these reforms benefit renters, they also benefit landlords by establishing clearer guidelines for leasing. For clients with rental properties, GLM Mortgage Group can provide insights on these new policies, helping you adjust to and benefit from a fairer rental market.
GLM Mortgage Group’s Services for Landlords
GLM Mortgage Group works with property owners to navigate rental property financing and optimize investment outcomes. We can help clients secure financing for new investments, explore options for refinancing, and provide guidance on the impact of the new Renters’ Bill of Rights on property management.
4. Home Buyers’ Bill of Rights: Improving Transparency and Fairness in Home Buying
The Home Buyers’ Bill of Rights is another notable reform aimed at improving fairness and transparency in Canada’s housing market. Its provisions include:
- Making Price History Available: One goal is to make price histories accessible on title searches, empowering buyers to make informed offers.
- Prohibiting Blind Bidding: The Bill of Rights includes proposals to curb blind bidding, which has driven up home prices by obscuring competitors’ offers. By addressing this, the government hopes to lower price inflation and create a more accessible market.
These protections add new layers of fairness, making the home-buying process more transparent. GLM Mortgage Group values transparency and is dedicated to helping clients navigate the home-buying journey with confidence.
GLM Mortgage Group’s Role in Home Buyer Advocacy
Our team at GLM Mortgage Group is well-versed in the intricacies of purchasing a home and the financial considerations involved. We guide clients through each step, ensuring they understand not only the financial aspects but also the legal implications of purchasing a home under the new Bill of Rights provisions.
5. Additional Government Support for Home Buyers and Renters
Beyond these significant policy updates, the federal government has also introduced:
- The Tax-Free First Home Savings Account (FHSA): This account enables first-time buyers to save up to $8,000 per year, up to a lifetime limit of $40,000, tax-free. Contributions to an FHSA grow tax-free and can be withdrawn without penalty to fund a down payment.
- Expanded Home Buyers’ Plan (HBP): The HBP has been enhanced to allow first-time buyers to withdraw up to $60,000 from their Registered Retirement Savings Plan (RRSP), tax-free, to support a down payment.
These tools offer Canadians further financial support as they save for homeownership. GLM Mortgage Group can guide clients in integrating these options into their savings plans, ensuring they make the most of available resources.
Maximizing Savings with GLM Mortgage Group
GLM Mortgage Group provides personalized financial advice to help clients optimize these government programs. Whether you’re exploring the FHSA or considering withdrawing funds from an RRSP, we’ll show you how to use these savings tools effectively.
Final Thoughts: Empowering Canadians in the Housing Market
Canada’s latest mortgage reforms represent a promising move toward making homeownership and renting more accessible and fair. The expanded insured mortgage cap, 30-year amortization, Canadian Mortgage Charter, and new bills of rights for renters and home buyers collectively aim to reshape the housing landscape for Canadians.
At GLM Mortgage Group, we’re committed to guiding our clients through these changes. Our expertise, extensive lender connections, and personalized approach make us a trusted partner for home buyers, homeowners, and investors. Reach out to GLM Mortgage Group today to discuss how you can benefit from these reforms and start building your path to homeownership or rental investment success.
