Big News for First-Time Homebuyers: New Amortization Changes Explained

Josh Perez • May 27, 2024

There’s been an important update from the liberal government regarding their recent budget announcement and its implications for first-time homebuyers.


The key change? Amortization periods for first-time homebuyers are increasing from 25 years to 30 years. However, this change is only applicable to new-build housing.

We're going to see, for first-time homebuyers only, amortization increases from 25 years to 30 years. What's not widely mentioned is this is only applicable for new-build housing.

What Does This Mean?

Extending the amortization period from 25 to 30 years can positively impact affordability and qualifying. Let’s look at an example to understand how this works.



Improved Qualifying Power

Consider a household with an income of $150,000. Previously, this household might have qualified for a $760,000 home. With the new amortization rule, they could now qualify for an $800,000 home, providing a significant boost in purchasing power.


Monthly Savings

If you’re comfortable with your current qualification at $760,000, this change could help you save money monthly. By extending the amortization to 30 years, your monthly payment could decrease by about $280. This change represents about a 5-6% improvement in financial flexibility.


Considerations and Challenges

While these changes offer benefits, they come with some considerations:


Higher Property Tax Estimates

For new-build properties without property tax assessments, most lenders use 1% of the purchase price as an estimate for annual property tax payments. This is typically higher than the property tax for resale homes, which could decrease your qualifying amount.


Unexpected Costs and Approval Challenges

New builds can be challenging due to unexpected closing costs and the difficulty of securing firm approvals for properties that won’t be completed for two years. Many people receive non-binding letters to satisfy builders, but these don’t offer the security needed for long-term planning.


Comprehensive Mortgage Planning

It's essential to cover the full scope of mortgage qualifying and planning for the future. If you’re considering this program, especially if targeting new builds, it’s crucial to proceed with caution. Thorough planning and expert advice can help navigate these complexities and make informed decisions.


Final Thoughts

While this policy change presents new opportunities, it’s important to be aware of potential challenges. The cost of new builds may rise due to increased demand, making thorough planning and expert advice critical.

If you have any questions or need assistance with your mortgage planning, consider reaching out to a professional to help you navigate these changes and make the most of the new opportunities in real estate.

Josh Perez
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Divorce and Your Mortgage: What You Need to Know

By Josh Perez • November 12, 2025
Going Through a Separation? Here’s What You Need to Know About Your Mortgage Separation or divorce can be one of life’s most stressful transitions—and when real estate is involved, the financial side of things can get complicated fast. If you and your partner own a home together, figuring out what happens next with your mortgage is a critical step in moving forward. Here’s what you need to know: You’re Still Responsible for Mortgage Payments Even if your relationship changes, your obligation to your mortgage lender doesn’t. If your name is on the mortgage, you’re fully responsible for making sure payments continue. Missed payments can lead to penalties, damage your credit, or even put your home at risk of foreclosure. If you relied on your partner to handle payments during the relationship, now is the time to take a proactive role. Contact your lender directly to confirm everything is on track. Breaking or Changing Your Mortgage Comes With Costs Dividing your finances might mean refinancing, removing someone from the title, or selling the home. All of these options come with potential legal fees, appraisal costs, and mortgage penalties—especially if you’re mid-term with a fixed-rate mortgage. Before making any decisions, speak with your lender to get a clear picture of the potential costs. This info can be helpful when finalizing your separation agreement. Legal Status Affects Financing If you're applying for a new mortgage after a separation, lenders will want to see official documentation—like a signed separation agreement or divorce decree. These documents help the lender assess any ongoing financial obligations like child or spousal support, which may impact your ability to qualify. No paperwork yet? Expect delays and added scrutiny in the mortgage process until everything is finalized. Qualifying on One Income Can Be Tougher Many couples qualify for mortgages based on combined income. After a separation, your borrowing power may decrease if you're now applying solo. This can affect your ability to buy a new home or stay in the one you currently own. A mortgage professional can help you reassess your financial picture and identify options that make sense for your situation—whether that means buying on your own, co-signing with a family member, or exploring government programs. Buying Out Your Partner? You May Have Extra Flexibility In cases where one person wants to stay in the home, lenders may offer special flexibility. Unlike traditional refinancing, which typically caps borrowing at 80% of the home’s value, a “spousal buyout” may allow you to access up to 95%—making it easier to compensate your former partner and retain the home. This option is especially useful for families looking to minimize disruption for children or maintain community ties. You Don’t Have to Figure It Out Alone Separation is never simple—but with the right support, you can move forward with clarity and confidence. Whether you’re keeping the home, selling, or starting fresh, working with a mortgage professional can help you understand your options and create a strategy that aligns with your new goals. Let’s talk through your situation and explore the best path forward. I’m here to help.

The Strategy Beats the Rate: Why Smart Mortgage Planning Matters More Than Falling Rates

By Josh Perez • November 5, 2025
Mortgage rates in Canada have been falling for most of the past year—and while that sounds like great news, I always encourage clients to pause and look deeper. A quarter-point rate drop might sound huge in the headlines, but in reality, it only saves the average buyer less than $100 a month . Don’t get me wrong—every bit helps—but that small difference isn’t what’s going to change your financial future. “The strategy beats the rate every single time.” — Josh Perez What really matters is how your mortgage is structured—because that’s where the long-term wins happen. Here’s how I approach it with my clients: Focus on Affordability Don’t just chase the lowest rate on paper. The real goal is a monthly payment that fits your lifestyle today while still leaving room for savings, investments, and emergencies. That’s what keeps you comfortable, not stressed. Think Beyond the Mortgage Your mortgage can be more than a payment—it can be a wealth-building tool . Smart amortization choices, extra payments, or using equity strategically later on can make a massive impact on your financial growth. “The right mortgage choice depends on your long-term plan, not just today’s rate.” — Josh Perez Plan for Flexibility If you choose a fixed term, understand the penalties that come with breaking it early. If you prefer variable, be sure you’re comfortable with the payment swings and how they impact your principal over time. The truth is, the “best” mortgage isn’t the one with the lowest rate—it’s the one that’s aligned with your goals, timeline, and flexibility needs . So yes—let’s enjoy the benefits of lower rates, but don’t let the headlines distract you from the bigger picture. The structure of your mortgage—and how it fits into your overall financial plan—is what really moves the needle. If you want to see how this looks with your actual numbers, let’s build a custom strategy together. Schedule a call with me today and I’ll show you exactly how to make your mortgage work smarter for you.