The landscape of home buying in Canada has undergone significant changes with the introduction of new regulations in recent years. Whether you're a first-time buyer or a seasoned homeowner, staying informed about these changes is crucial. Here's a breakdown of what you need to know:
- Increased stress test for uninsured mortgages: Uninsured mortgages, which are mortgages with a down payment of 20% or more, are now subject to a higher stress test. Borrowers must now prove that they can afford their mortgage payments at an interest rate that is 2 percentage points higher than the contract rate or the Bank of Canada's 5-year benchmark rate, whichever is higher.
- The homebuyer's tax credit has been increased: The federal government has increased the Home Buyer's Tax Credit from $5,000 to $10,000. This tax credit can be used to offset closing costs and other expenses associated with purchasing a home.
- The first-time homebuyer incentive has been expanded: The First-Time Home Buyer Incentive, which allows eligible buyers to finance a portion of their home purchase through a shared equity mortgage with the federal government, has been expanded to include higher-priced homes in Toronto, Vancouver, and Victoria.
- Ban on foreign buyers: The Canadian government has implemented a ban on foreign buyers, prohibiting non-residents and non-Canadians from purchasing homes in Canada for a period of two years (extended to 2027). This is in an effort to make the housing market more accessible to Canadian residents and to address concerns around housing affordability.
Navigating these new home buying rules and the ban on foreign buyers can be challenging, which is why it's important to work with an experienced and knowledgeable mortgage broker.
At Team Sammy Hammouda, we have a deep understanding of the new rules and regulations, and can help you navigate the process of purchasing a home in Montreal. We can help you understand your mortgage options, determine how much you can afford, and guide you through the entire home buying process from start to finish.
Contact Sammy Hammouda today!
