Canada eases mortgage rules to address housing crisis

The Canadian government has announced relaxed mortgage rules to address the country’s housing crisis. Finance Minister Chrystia Freeland revealed changes allowing higher insured mortgage limits and expanded 30-year loan options. Starting December 15, the cap on insured mortgages will increase from $1 million to $1.5 million, enabling more buyers to secure homes with smaller down payments.

Additionally, 30-year amortization periods will be available for first-time homebuyers and those purchasing newly built homes. The new rules aim to stimulate housing construction, though analysts express concern about potential long-term affordability. Some experts warn the policy could drive up housing demand and prices.

Desjardins economist Marc Desormaux cautioned that while the changes might benefit some buyers, they could worsen affordability over time. Realtor John Pasalis criticized the plan, saying it addresses short-term goals without tackling the broader housing shortage.