Thanks to Trish McKean for the following news
Effective August 1st, 2024, the Department of Finance will now allow homeowners purchasing a newly built property and who meet First Time Home Buyer (FTHB) criteria, the option of a 30 year amortization for insured mortgages.
Following the direction of the insurers, lenders will consider the same subject to the below criteria being met:
- Insured loans only, 80.01-95% LTV
- New submissions received on or after August 1, 2024
- Existing applications resubmitted on or after August 1, 2024, and funds have not been advanced to the lawyer
- At least one borrower to be a FTHB, defined as below:
- The borrower has never purchased a home before; or
- In the last 4 years, the borrower has not occupied a home as a principal place of residence that either they themselves or their current spouse or common-law partner owned; or
- The borrower recently experienced the breakdown of a marriage or common-law partnership.
- At least one borrower must occupy the property
- Eligible Properties:
- Available for 1 – 4 Units
- Owner Occupied or Partially Owner Occupied
- Newly built homes and condos ONLY
- Insurer Premium – surcharge of 0.20% applicable to loans where amortization is >25 years
- Eligible loan type – Purchase, Purchase Plus Improvement, Port/Replacement
Ineligible loan type – Small Rental and Secondary Home Programs