Last week Deputy Prime Minister and Finance Minister Chrystia Freeland announced that 30-year amortization periods for first-time buyers on new construction homes will be available starting August 1st.
You might be surprised how much more the amortization will affect affordability than interest rates.
If someone wants a $2,000/month mortgage payment they would currently have to buy something at $350,000 (4.89% and 25 year amortization).
When the amortization period increases to 30 years on August 1, this $2,000/month mortgage will now allow you to buy a house at $380,000 (4.89% and 30 year amortization).
For every 0.25% decrease in the interest rate, buyers get an additional $10,000 of buying power.
Click the link below for more information or contact one of our Sales Associates and they will be happy to tell you more.
Article: Putting home ownership back within reach and supporting Canadian homeowners