The "30 Year Rule" in Canada refers to a recent change in mortgage rules allowing first-time homebuyers to finance newly built homes over a 30-year mortgage term. This change was announced in Budget 2024, aiming to make homeownership more accessible for young Canadians.
This rule specifically applies to first-time homebuyers purchasing new construction homes. It doesn't affect existing homes or apply to all buyers.
Here's a breakdown:
- Eligibility: The 30-year mortgage rule is only available to first-time homebuyers in Canada.
- Type of Property: This rule applies only to newly built homes. It does not extend to existing homes, pre-owned properties, or other types of real estate.
- Mortgage Term: The 30-year mortgage term allows first-time buyers to spread their payments over a longer duration, potentially lowering their monthly mortgage payments.
This change in the Canadian mortgage landscape aims to make homeownership more attainable for first-time buyers. It provides them with a potentially lower monthly payment burden, enabling more Canadians to reach their dream of owning a home.
