OTTAWA, ON, Aug. 1, 2024 /CNW/ - In Budget 2024, the federal government announced it would amend mortgage rules to allow up to 30-year mortgages for first-time homebuyers purchasing newly constructed homes. As of today, August 1, 2024, these new mortgage rules are in effect. 

Canada Mortgage and Housing Corporation's (CMHC) new Home Start product will provide mortgage loan insurance to first-time homebuyers of new builds with 30-year amortizations. This will help open the door for more Canadians to purchase their first home by allowing an additional five years to pay off their mortgage, thereby lowering monthly payments.

Home Start is applicable to all housing types, including manufactured homes, so long as the home is a new construction. Interested homebuyers can reach out to their mortgage professional to learn more about CMHC Home Start and other CMHC mortgage loan insurance products available to help meet their housing needs.

Quick facts:

• CMHC is mandated, through the National Housing Act, to promote housing affordability, support an efficient and competitive housing finance market, and contribute to the stability of Canada's financial system.
• CMHC's mortgage loan insurance contributes to more affordable financing for qualified homebuyers, enabling borrowers with less than 20% down payment to access financing at interest rates that are comparable to those offered with a larger down payment.
• Mortgage loan insurance is an important part of both our affordability and stability objectives.

Additional Information:

• Visit Canada.ca/housing for the most requested Government of Canada housing information.
• CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers unbiased housing research and advice to all levels of Canadian government, consumers and the housing industry. CMHC's aim is that everyone in Canada has a home they can afford and that meets their needs. For more information, follow us on Twitter, Instagram, YouTube, LinkedIn and Facebook.
• To find out more about the National Housing Strategy, please visit www.placetocallhome.ca

SOURCE Canada Mortgage and Housing Corporation (CMHC)