A higher insured price ceiling
The maximum purchase price eligible for insured financing was increased, which matters enormously in Toronto where a large share of inventory sat above the old limit. Buyers below the new ceiling can purchase with a tiered down payment instead of a full twenty percent.
Thirty-year amortizations for some buyers
Thirty-year insured amortizations are available to first-time buyers and to purchasers of newly constructed homes. The lower payment improves qualifying ratios. Total interest over the life of the loan is higher, so pair it with prepayments as income allows.
Easier switching at renewal
Guidance now allows straight switches at renewal without reapplying the stress test in defined circumstances, which restores negotiating power to borrowers who were previously locked in with their existing lender. This is one of the most valuable changes for anyone renewing.
- Same balance and same amortization typically required
- Adding new money makes it a refinance, not a switch
- Shop the market four months before maturity
What did not change
The stress test still applies to purchases and refinances. Refinances are still capped at eighty percent of appraised value. Insured financing is still limited to owner-occupied properties, and rental purchases still require twenty percent or more down.
Frequently asked questions
- Do these changes apply to me if I already own?
- The renewal switching change does. Amortization and insured cap changes mostly apply on new purchases.
- Can I refinance up to ninety percent of my home value?
- No. Conventional refinancing is capped at eighty percent of appraised value. Above that requires secondary financing at higher cost.
Talk to a Toronto private mortgage specialist
We arrange equity-based financing across Toronto and the GTA, whether you need a first position from a private lender or a second mortgage behind the bank you already have.