In a bid to address Canada’s housing crisis, Deputy Prime Minister and Finance Minister Chrystia Freeland announced new changes to mortgage rules on Sept. 16, set to take effect in December, aimed at making housing more affordable.
The first major change is an increase in the price cap for insured mortgages, raising it to $1.5 million from $1 million.
In Canada, if potential home buyers have less than a 20 per cent deposit, they are required to have default insurance. Mortgage insurance protects lenders against default and helps consumers buy homes with as little as five per cent down payment. Prior to this announcement, insurance has only been available for homes priced at $1 million or less.
