Over the last ten years, homeownership costs have soared, leaving many young millennials and Gen Z feeling as if homeownership is out of reach for their generations. From August 2014 to August 2024, the national benchmark price rose by 80% from $397,900 to $717,800, and with the combination of rising interest rates, mortgage payments have also climbed. <\/p>\n\n\n\n
Fortunately, the federal government recently announced the \u201cboldest mortgage reforms in decades\u201d and aims to put homeownership within reach for younger generations. The proposed mortgage reforms would go into effect on December 15, 2024, allowing all first-time homebuyers and buyers of new builds to have 30-year amortization periods. On top of that, the new measures will also increase the price cap for insured mortgages from $1 million to $1.5 million. <\/p>\n\n\n\n
“This could be a game changer for younger generations eager to enter the housing market,\u201d says Carrie Lysenko, Zoocasa CEO. \u201cBy extending amortization periods and raising the insured mortgage cap, a greater number of Canadians will have the opportunity to buy in more competitive and higher-priced markets like the Greater Toronto and Greater Vancouver<\/a> areas, thus making homeownership more accessible in regions where it has previously felt out of reach.\u201d<\/p>\n\n\n\n To help Canadians better understand the impact of these proposed changes, Zoocasa has broken down what the reforms mean and how they can make homeownership more attainable.<\/p>\n\n\n