Mortgage Marketers Eye First Home Lending in Canada with 30-Year Term

Published on April 11, 2024

Mortgage marketers are looking to the Canadian market to expand the scope of first home buyer lending, as Finance Minister -- and former Financial Times Deputy Editor -- Chrystia Freeland expanded loan term limits to 30 years from 25 previously.

Why it matters: Any move that could lower monthly mortgage costs for young families could increase mortgage demand, and marketers in Canada should be ready for simple communication strategies that explain the lower monthly costs.

Driving the news: The change will be included in the next national budget, which will also propose to increase the withdrawal limit of Home Buyers' Plan, which allows Canadians to take money out of a registered retirement savings plan, from C$35,000 to C$60,000.

What they're saying: "By extending amortization, monthly mortgage payments will be more affordable for young Canadians who want that first home of their own," Freeland said, according to Reuters. "What we are announcing today will make a down-payment much more attainable for younger Canadians."

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