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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Deposit Lending And Bridge Financing

By Josh Perez • April 30, 2025
Let’s say you have a home that you’ve outgrown; it’s time to make a move to something better suited to your needs and lifestyle. You have no desire to keep two properties, so selling your existing home and moving into something new (to you) is the best idea. Ideally, when planning out how that looks, most people want to take possession of the new house before moving out of the old one. Not only does this make moving your stuff more manageable, but it also allows you to make the new home a little more “you” by painting or completing some minor renovations before moving in. But what if you need the money from the sale of your existing home to come up with the downpayment for your next home? This situation is where bridge financing comes in. Bridge financing allows you to bridge the financial gap between the firm sale of your current home and the purchase of your new home. Bridge financing allows you to access some of the equity in your existing property and use it for the downpayment on the property you are buying. So now let’s also say that it’s a very competitive housing market where you’re looking to buy. Chances are you’ll want to make the best offer you can and include a significant deposit. If you don’t have immediate access to the cash in your bank account, but you do have equity in your home, a deposit loan allows you to make a very strong offer when negotiating the terms of purchasing your new home. Now, to secure bridge financing and/or a deposit loan, you must have a firm sale on your existing home. If you don’t have a firm sale on your home, you won’t get the bridge financing or deposit loan because there is no concrete way for a lender to calculate how much equity you have available. A firm sale is the key to securing bridge financing and a deposit loan. So if you’d like to know more about bridge financing, deposit loans, or anything else mortgage-related, please connect anytime! It would be a pleasure to work with you.

Should You Double Down or Diversify in Real Estate Investing?

By Josh Perez • April 30, 2025
If you’re crushing it with duplex conversions, Airbnb rentals, flips, or student housing, you might be wondering: Should I double down on what’s working—or start learning about other strategies to diversify my real estate portfolio? It’s a great question—and one I get asked all the time. My typical advice? Double down on your strengths, outsource your weaknesses. If you’ve found a strategy that fits your skills, market, and cash flow goals, it’s smart to build momentum. But in real estate—especially in today’s market—it’s just as important to stay informed and flexible. Why Staying Educated Matters Real estate isn’t static. The rules of the game are constantly changing. Lending practices shift. Local bylaws evolve. What worked flawlessly last year may become less profitable—or even unviable—this year. Here’s what I mean: “If lenders and banks don’t want to lend as much on certain assets—like student rentals or short-term rentals—or they start to clamp down on duplex conversions, that changes your rate of return. That changes the rules of the game.” If your entire strategy depends on leverage (and let’s face it, most real estate investing does), changes in financing can dramatically shift the effectiveness of your current approach. Keep Learning, Stay Adaptable Even if you’re succeeding now, always keep learning. New strategies like BRRRR, rent-to-own, mid-term furnished rentals, or commercial opportunities might offer different advantages in changing markets. You don’t need to master them all, but you do need to understand how they work—and when it might make sense to pivot. Final Thoughts Crushing one niche? Keep going. But don’t ignore the bigger picture. As markets evolve, being aware of shifting rules, lender policies, and local regulations will give you the edge.  At the end of the day, the best investors aren’t just good at one strategy—they’re nimble, informed, and proactive. If you want to chat about how to strengthen your current investments and position yourself for what’s next, let’s connect.