Some new changes to Canada’s mortgage rules could open up some great opportunities for you. Whether you’re buying a home, considering refinancing, or approaching your mortgage renewal, these changes may positively impact your mortgage options. 

Here’s a quick breakdown of the key updates and what they could mean for you:

1. Renewals – Stress Test Dropped for Uninsured Mortgage Switches
If you’re renewing your uninsured mortgage with the same amortization schedule, loan amount, and at least 20% equity, the stress test will no longer apply to federally regulated lenders as of November 21^st. This means you can potentially change lenders and qualify based on the contract rate, not the higher stress-tested rate, giving you more flexibility to shop for competitive rates — potentially lowering your monthly payments and securing better terms.

2. Buying A Home – Changes to Insured Mortgages
Beginning December 15th, buyers will be able to qualify for an insured mortgage up to $1.5 million, an increase from $1 million. Additionally, first-time buyers and those purchasing newly built homes will now have the option of a 30-year amortization. This means you can enter the market with a smaller down payment and increased buying power — bringing you closer to your dream home.

3. Refinancing – Unlock Up to 90% of Your Property’s Value
Starting January 15, 2025, homeowners can access up to 90% of their home’s value through refinancing to fund the creation of rental units (like basement apartments or laneway houses). With this program, you can refinance based on the enhanced value of your property, including the new units, as long as the total property value doesn’t exceed $2 million once the upgrades are complete. With rental demand on the rise, this is a great opportunity to maximize the value of your property and generate extra income.

While more details are to come, these rule changes are set to provide greater flexibility and new possibilities for Canadian homeowners.