Pamela Verma

Canada's federal budget proposed raising the home price limit for optional mortgage default insurance from $1M to $1.5M, expanding eligibility for borrowers.
Eligible buyers with larger down payments could access 30-yr insured mortgages if a borrower is a first-time buyer or the home is newly built.
A 30-yr repayment period generally lowers monthly payments compared with 25 yr, but increases total interest costs if the interest rate remains unchanged.
New regulations would make insured mortgage rate information more current and detailed, helping borrowers compare offers; Canada's central bank would publish the data.
Canada plans to develop and test an income verification service for lenders and insurers, aiming to improve application processing and reduce mortgage fraud.

Canada Could Expand 30-Year Insured Mortgages

Canada plans to remove the $1.5M property value ceiling and owner-occupancy requirement for eligible new triplexes and fourplexes, expanding potential financing options.
Private insurers could cover loans for properties with 5 to 50 homes, including construction, purchases, refinancing and renewals, without a value ceiling or owner-occupancy requirement.
For eligible new triplexes and fourplexes, insured loans could cover up to ~90% of expected completed value, including construction and purchases of newly completed properties.
Eligible builders could rent out all 4 homes in a completed fourplex with an insured mortgage repaid over up to 30 yr, or sell individually.
The changes will apply to lender-submitted mortgage insurance applications on or after February 1, 2027, aiming to help smaller builders finance more housing.