Whether you're looking to buy your first home or upgrade your current home, recent Canada Mortgage and Housing Corporation changes may help.
To help make homeownership more accessible, especially in high-priced housing markets like Vancouver Island, new regulations came into effect in 2024 that make it easier to save for a down payment, and to undertake renovations.
To work towards this goal, the Canadian government is making policy changes to help increase home construction and potentially stabilize prices – a benefit for all buyers.
"When houses are more affordable, it’s easier for first-time buyers to enter the market, especially in regions like ours, with higher home values," explains Brenda Carmichael, Lending & Sales Development Assistant Manager with Coastal Community Credit Union, serving 120,000 members and clients on Vancouver Island and the Gulf Islands.
How do the CMHC mortgage changes help you?
Under the 2024 CMHC mortgage changes, first-time home buyers can:
- Qualify for a mortgage with a lower down payment on CMHC mortgages up to $1.5M
- Have lower monthly payments when buying a brand new or existing home with a 30-year mortgage
- Save more for down payment through the Home Buyers Plan, which allows RRSP withdrawal of up to $60,000, up from $35,000. Together, both spouses can now withdraw up to $120,000 as a downpayment – funds they won’t have to start repaying to their RRSP until after a five-year grace period.
- Use the First Home Saving Account to save up to $8,000 per year, tax-free**
- Take advantage of the $1,500 First-Time Home Buyers Tax Credit
- Use rental payment history to help support mortgage applications
- Cover reno costs with Purchase Plus Improvements at time of purchase
In addition to first-time buyers, existing owners looking to renovate or buy can also benefit with changes including:
- Qualifying for a mortgage with a lower down payment on CMHC mortgages up to $1.5M
- Lower monthly payments when buying a brand new home with a 30-year mortgage
- Easier process to switch to Coastal Community upon mortgage renewal
- Refinance to build a rental suite, in-law suite or laneway home
- Low-interest loans to help with renovations and grants or interest-free loans to make your home more energy-efficient
"Whether you're looking to buy your first home or your next home, or to renovate your existing home, it's crucial to get the right advice on how much you can afford, so you can set realistic goals," Carmichael says. "Having someone sit down with you to explain the mortgage process, how to get approved and what payments would be comfortable for you is invaluable. Starting is better than not starting – reach out to us today!"
*Coastal Community may provide a competitive mortgage rate upon qualification when switching your mortgage.
*Limited time offer. Terms and conditions apply.
** You can contribute up to $8,000 per year to your FHSA, with a lifetime limit of $40,000. Learn more.