I am pleased to share our strong support for the recent federal government decision to extend mortgage terms to 30 years for first-time homebuyers and to all buyers of new builds; and raise the Canadian Mortgage and Housing Corporation (CMHC) insurance cap from $1 million to $1.5 million. This landmark change represents a significant step in making homeownership more accessible and attainable for many individuals and families who have long aspired to own a home. 

These policy changes are also aligned with recent recommendations of the Cornerstone Association of Realtors (Cornerstone). We are proud to have championed these changes in my August opinion piece, which specifically called for expanding the recently introduced 30-year amortizations for first-time buyers of newly built homes to include resale homes. 

As a Realtor, I have witnessed firsthand the challenges buyers face in saving up for a down payment large enough to afford a starter home. Under the new rules, first-time buyers can purchase a $1.5-million home with a $125,000 down payment, compared to the current $300,000 requirement.  

By spreading out the repayment period over 30 years, homebuyers will benefit from reduced monthly payments, making homeownership more financially viable and allowing many hopeful buyers to achieve the dream of homeownership sooner and more manageably. For example, a $800,000 mortgage would carry for approximately $575 less a month with a 30-year mortgage versus a 25-year mortgage. 

This will provide financial relief and promote long-term stability and security for those taking their first steps onto the property ladder. And help bridge the gap between aspiration and reality for many prospective homeowners who might otherwise be excluded from the market due to high upfront costs and financial barriers. 

We commend the federal government for recognizing the need for this crucial adjustment and for taking proactive steps to support first-time homebuyers. At Cornerstone, we remain committed to working collaboratively with all levels of government to ensure everyone has access to housing and that our members continue to have the resources they need to support their clients effectively. 

Thank you for your attention to this important matter. We look forward to the positive impact this change will have on aspiring homeowners.Sincerely, 

Julie Sergi 
Chair, Cornerstone Association of Realtors