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New Mortgage Rules and Blueprint for Home Buyers’ Bill of Rights

Message from CREA:

Government Announces New Mortgage Rules and Blueprint for Home Buyers’ Bill of Rights

The federal government announced mortgage reforms aimed at increasing homeownership opportunities for first-time buyers:
  • Increasing the price cap for insured mortgages from $1 million to $1.5 million, effective December 15, 2024.
  • Expanding eligibility for 30-year mortgage amortization to all first-time home buyers, effective December 15, 2024.
  • Extending eligibility for 30-year mortgage amortization to all buyers of new builds, effective December 15, 2024.
The Canadian Real Estate Association (CREA) welcomes these reforms, which represent a significant step towards improving access to homeownership and making housing more attainable, something REALTORS® have advocated for and continue to stand behind.

The federal government also released their blueprint for a Home Buyers’ Bill of Rights. The blueprint aligns with the Government of Canada’s commitment to improving housing access and affordability as outlined in Solving the Housing Crisis: Canada’s Housing Plan and builds on measures previously announced in Budget 2024.

The blueprint for a Home Buyers’ Bill of Rights serves as a framework designed to guide provinces, territories, and stakeholders in the housing space in developing and implementing effective housing policies. The recently announced mortgage reforms also aim to increase homeownership opportunities for first-time buyers.

Acknowledging that governments share the responsibility to ensure Canadians’ right to adequate housing, this blueprint sets out four principles guiding the federal approach to creating a fair and well-functioning home buying system: 
  1. Ensuring everyone has a safe and affordable place to call home: Investing in faster home construction, improving processes, and encouraging sustainable and innovative solutions to meet diverse housing needs. 
  2. Fostering fairness and transparency: Enhancing regulatory oversight, enhancing financial literacy, and ensuring accessible information, with a focus on encouraging energy efficiency and climate resiliency at the time of sale and considering reforms such as blind bidding to promote a level playing field and informed decision-making.
  3. Addressing inequity and discrimination: Extending amortization periods for first-time buyers, exploring alternative financing options like halal mortgages, and urging provincial and territorial governments to implement tailored programs and culturally appropriate services to support equity-denied groups and Indigenous peoples, while also enhancing legislation and complaint mechanisms to combat discrimination and barriers in the housing system.
  4. Safeguarding the system: Implementing the Canadian Mortgage Charter and addressing tax loopholes, while urging provincial and territorial governments to enhance oversight of housing services, establish accessible complaint resolution processes, and impose strong enforcement measures, including increased inspections and significant penalties for misconduct, to protect consumer rights and ensure fairness in the market.
Over the following weeks, we will analyze the implications of these announcements and their potential impact on REALTORS®. 
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