30-Year Amortizations on New Builds: What You Need to Know

February 2025 | 30-Year Amortizations

Big Changes in 2024!

Last year, Canada shook things up with new mortgage rules. Initially, only first-time buyers of new builds could snag a 30-year amortization (starting August 1, 2024). But by September 16, 2024, anyone buying a new build—yes, even condos or pre-construction homes—could opt in, effective December 15, 2024. This applies to both insured (less than 20% down) and uninsured mortgages. Talk about levelling the playing field!

Did You Know?

All new build buyers now qualify for 30-year amortizations. Why? To make monthly payments lighter and encourage more housing development. For example, a $640,000 mortgage at 4% over 30 years drops payments to ~$3,047/month vs. ~$3,300 over 25 years. That’s a $253/month difference!

Why It’s Awesome News

A 30-year mortgage might sound intimidating, but think of it as a flexible tool. New builds often come with surprises (hello, property taxes or utility bills!). A longer amortization keeps payments low while you figure things out. PPlus, most mortgages include privileges like accelerated payments or lump-sum contributions, allowing you to pay off the loan faster if you choose.

Renewal Flexibility

Every 5 years, you’ll renew your mortgage. If you’ve built equity or want to shorten the timeline, just say the word! Your lender can adjust the amortization to keep payments affordable while you crush your goals.

The Bottom Line

A 30-year amortization isn’t forever—it’s a starting point. You can always pay it off faster or shorten the term later. For new builds, it’s a smart way to balance affordability with flexibility. Ready to explore? Let’s chat!