New mortgage reforms bring homeownership closer to reality

Owning a home in the Greater Toronto Area (GTA) and Greater Golden Horseshore can feel out of reach for some, but new federal mortgage reforms are offering some much-needed relief. The extension of 30-year insured mortgages to now include all first-time buyers of all home types and buyers of new builds, combined with an increased insured mortgage cap to $1.5 million, will provide flexibility and open up more opportunities for Ontarians to enter the housing market. These reforms, supported by TRREB, represent a crucial step forward in addressing affordability, and we’ll continue advocating for additional measures to improve the housing supply.

What are the new mortgage reforms?

The federal government’s mortgage reforms include two major changes: Extending insured mortgage amortization to 30 years for all first-time buyers and raising the insured mortgage price cap from $1 million to $1.5 million. This better reflects high housing costs in markets such as the GTA, making homeownership more accessible.

The housing market especially presents increasing challenges for first-time homebuyers. The extension of the new 30-year insured mortgage to now include all first-time buyers will help alleviate the financial strain through lower monthly payments, making homeownership more feasible for many. The raised price cap for insued mortgages also acknowledges the GTA’s real estate reality, ensuring buyers have access to more financing options in this competitive market.

TRREB has long advocated for reforms that tackle affordability, and while these changes are significant, they are only part of the solution.
In a recent statement TRREB CEO John DiMichele said, “These changes represent positive steps toward improving housing affordability and accessibility, particularly for first-time buyers in the GTA.”

We need to continue focusing on increasing housing supply, which remains an ongoing issue in our region. TRREB will work alongside government and industry stakeholders to ensure policies continue to address both demand and supply challenges. We remain committed to pushing for further measures that promote long-term affordability and ensure sustainable growth in the housing market.

Visit trreb.ca for the latest look into the housing market, plus read our stance on policies impacting our marketplace and to connect with a TRREB member realtor.