30-year Insured Amortizations: Officially on the Comeback Trail

As MLN hinted last Thursday, insured 30-year amortizations are coming back from the dead after a 12-year absence—with a few strings attached.

Finance Minister Chrystia Freeland made the announcement today and the change takes effect August 1. Insured extended amortizations will be available to first-time buyers purchasing new construction only.

There's no word yet on what insurance premium surcharges will apply. Nor do we know what exactly constitutes "new construction." CMHC didn't have an answer when we asked them today, but we'd guess it's any unsold/never-occupied, pre-construction or existing, single- or multi-unit home.

A Finance Department official told MLN, "Before finalizing details around eligibility, mortgage insurers—including CMHC—need to have conversations with mortgage lenders ... So, in the near future, we will make sure younger Canadians know exactly what types of new builds qualify for the 30-year amortization."

How it impacts borrowers