The Bank of Canada Cuts Interest Rate by 0.50%!
  
The BoC announced another interest rate cut by 50 basis points this week. With the 0.5% rate cut today, people with variable rate mortgages or lines of credit can expect savings of approximately $41.67 per $100,000 of mortgage.
This translates to real reductions in interest costs, helping you keep more money in your pocket!
Mortgage Changes Coming December 15!
Mortgage Cap Update: Higher Loan Limits
Starting December 15th, the maximum loan amounts will increase. This is great news, especially for those in higher-priced markets where the current loan limits may have made it more difficult to secure enough financing. Whether you're looking to buy a more expensive home or need additional funds for your next property, this increase in loan limits could be a game-changer for you.
This adjustment means you could have access to more financing without requiring a larger down payment, making homeownership more attainable for many buyers.
30-Year Amortization Period
Also effective December 15th, the maximum amortization period will be extended to 30 years for qualified borrowers. This longer timeframe can significantly lower your monthly mortgage payments by spreading them out over a greater number of years.
A 30-year amortization could be beneficial for:
First-time homebuyers looking to manage cash flow. Homeowners refinancing and seeking lower monthly payments. Investors wanting more financial flexibility
By reducing your monthly payments, a 30-year amortization offers you the opportunity to balance your mortgage alongside other financial commitments, all while still building equity in your home.
New Federal Program for Home Owners Adding a Rental Suite
Starting in January 2025, home owners wishing to use their home equity to create up to three suites in their home will be permitted to refinance their mortgage up to 90% of their property's improved value up to $2 million. The home owner must already live in the home and be creating a separate suite(s). This program is for the creation of self-contained suites, such as basement suites or laneway homes. Short term rentals are not permitted. Insured mortgages with 30-year amortizations will be permitted under this program.
How Can These Changes Benefit You?
Afford More Home: With higher loan amounts, you’ll have the potential to increase your purchasing power. Whether you’re looking to buy a larger home or move into a more desirable area, this change could make it more accessible.
Lower Monthly Payments: The option for a 30-year amortization means that your monthly mortgage payments can be more manageable, even if you decide to borrow a larger amount. This can provide you with greater financial flexibility for other needs or investments.
Refinancing Opportunities: If you’re already a homeowner, the new loan limits and extended amortizations might make refinancing a great option to consolidate debt, renovate, or access equity for other goals while keeping your payments in check.
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