By: Geoff Harris, Real Estate Broker
Unlock New Opportunities with Harris Homes & Co.
Canada's mortgage landscape is undergoing significant transformations aimed at enhancing housing affordability and accessibility. These changes present exciting new opportunities for homebuyers, homeowners looking to refinance, and those approaching their mortgage renewal. As these updates unfold, we at Harris Homes & Co. are here to help you navigate these options and make informed decisions to achieve your goals.
1. Renewals: Stress Test Dropped for Uninsured Mortgage Transfers
Effective November 21, 2024, homeowners with uninsured mortgages (those with at least 20% equity) can now switch lenders upon renewal without being subject to the previously mandatory stress test. This change provides more flexibility, allowing you to shop around for the best mortgage rates and potentially lower your monthly payments.
In simple terms, the power is back in your hands—you can qualify based on the contract rate instead of the higher stress-tested rate, helping you save money over time and better position your finances. With the freedom to choose, you can ensure that you’re getting the best possible terms for your unique circumstances.
What this means for you: If you're approaching your renewal date, now is the perfect time to explore your options. With this new flexibility, switching lenders could mean better rates and more savings. We can work together to assess your options, ensuring you’re not missing out on any opportunities.
2. Buying a Home: Enhanced Insured Mortgage Cap and Extended Amortization
From December 15, 2024, the borrowing limit for insured mortgages will be increased to $1.5 million, up from the previous $1 million cap. This adjustment aims to help more Canadians enter the housing market, even in high-priced areas where homes may have previously been out of reach.
Additionally, first-time buyers and those purchasing newly built homes can now qualify for a 30-year amortization period, extending the loan term and making monthly payments more manageable. With these changes, prospective buyers will have increased purchasing power and greater flexibility to find the right home for their budget.
How this helps you: More buying power and extended amortization mean that you can comfortably afford your dream home without overextending your budget. If you’ve been on the fence about buying due to high prices or tight finances, this could be the perfect time to enter the market.
3. Refinancing: Unlock Up to 90% of Your Property's Value for Rental Unit Creation
Beginning January 15, 2025, homeowners will be able to refinance up to 90% of their home’s value to create rental units like basement apartments or laneway houses. This change presents a unique opportunity to maximize the value of your property while also tapping into the growing rental market.
This move could help you generate extra income by creating additional rental space—especially with rental demand on the rise across Canada. Plus, the new rental units will add to the overall value of your property, which can be a long-term financial boost.
What this means for you: If you’ve been considering creating a rental unit to supplement your income, now might be the time to act. By refinancing to access more of your property’s value, you can invest in renovations or upgrades that pay off in the long run. We can help you evaluate if refinancing is right for you and guide you through the steps to make it happen.
Key Takeaways for Buyers and Homeowners
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Increased Purchasing Power: The new insured mortgage cap means you can consider a wider variety of properties, even in high-priced areas.
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Lower Monthly Payments: With extended amortization periods, you’ll be able to manage payments more easily, making homeownership more accessible.
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Greater Flexibility on Renewals: Dropping the stress test for uninsured mortgage switches means it’s easier to find better rates without unnecessary hurdles.
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Refinance for Income Generation: Unlocking 90% of your property’s value for rental units opens doors for additional income streams.
Why Choose Harris Homes & Co.?
Navigating the mortgage market can be challenging, but we’re here to make it easy. At Harris Homes & Co., we pride ourselves on helping clients make the most informed choices. Our experience in real estate, deep market knowledge, and commitment to delivering results allow us to guide you effectively through every step of the process.
Whether you’re buying your first home, renewing your mortgage, or looking to refinance and maximize the value of your property, Geoff Harris and the Harris Homes team are here to help. Our goal is to put more money in your pocket, minimize stress, and achieve outstanding results—this is the Harris difference.
Let’s Connect and Review Your Options
Interested in finding out how these mortgage changes can work in your favor? Let’s have a conversation to explore your unique situation and develop a tailored strategy that fits your needs.
Contact us today for a free consultation and take the first step toward making your real estate dreams a reality.