The federal government has announced that it will permit 30-year amortizations on insured mortgages for first-time homebuyers purchasing new construction homes. This means that while the home must still meet all CMHC and insurer criteria, the new advantage of having a 30-year amortization period available will slightly ease the monthly payments.

Based on the regulations, it's important to note that the purchase price must be under one million dollars. It is currently unclear whether the stress test will also adhere to the 30-year amortization criteria, which would certainly provide some relief in qualification requirements.

The new rules take effect on August 1st.

John Chrisanthidis, Mortgage Broker (FSCO Lic. M08001294 Mortgage Intelligence FSCO Lic. 10428)

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