Canada Mortgage Rates 2024: Latest Changes and Revised Rates You Need to Know

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Canada’s housing market is experiencing a transformation, with significant shifts in mortgage rates and policies set to bring substantial relief to homeowners and first-time buyers alike. These changes, which include lowered interest rates and increased access to insured mortgages, are designed to make homeownership more attainable, particularly in expensive cities such as Toronto and Vancouver.

Overview of Canada’s Revised Mortgage Rates for 2024

In 2024, Canada’s mortgage landscape is undergoing notable revisions, aimed at both easing financial pressure on homeowners and enhancing opportunities for new buyers. Key measures include the Bank of Canada lowering interest rates, alongside government reforms such as extended amortization periods and an increase in the insured mortgage cap. These adjustments reflect efforts to make housing more accessible in high-cost markets while fostering competition among lenders.

Key Changes in Mortgage Policies for 2024

  • Bank of Canada Policy Rate: The policy rate stands at 4.25%, after a series of cuts in 2024.
  • Insured Mortgage Cap: The cap has been raised from $1 million to $1.5 million.
  • Amortization Period for Insured Mortgages: The maximum amortization has been extended to 30 years for all buyers.
  • Mortgage Rate Outlook for 2024: Mortgage rates are expected to decrease gradually, with a 5-year fixed rate potentially dropping to 5.4% by year-end.
  • Stress Test Exemption for Lender Switching: Borrowers can now change lenders at renewal without having to requalify.

The Bank of Canada’s Interest Rate Cuts

The Bank of Canada has been actively reducing its interest rates throughout 2024, following a peak of 5% in 2023. The current rate sits at 4.25%, representing a 75-basis-point reduction over the year. This move has brought relief to homeowners with variable-rate mortgages, who will see their monthly payments decrease as a result. For example, a homeowner with a $667,000 mortgage and a 10% down payment saw their payments drop by around $70 after the September rate cut.

Significant Reforms in Mortgage Policies

Several key reforms aim to make homeownership more affordable, particularly for first-time buyers.

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