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 vs. Down Payment: Key Differences for Homebuyers

By Josh Perez • February 18, 2026
When you’re buying a home, two terms often cause confusion: deposit and down payment . While they’re related, they serve very different purposes in the homebuying process. Here’s what you need to know. What Is a Deposit? A deposit is the money you provide when you make an offer on a property. Think of it as a show of good faith that proves you’re serious about purchasing. How it works : Typically, you provide a certified cheque or bank draft that your real estate brokerage holds in trust. If your offer is accepted, the deposit remains in trust until the deal moves forward. If negotiations fall through, the deposit is refunded. Connection to your down payment : Once the sale is finalized, your deposit becomes part of your total down payment. Why it matters : The amount is negotiable, but a larger deposit can make your offer more attractive in a competitive market. Keep in mind, however, that if you back out after conditions are removed, you risk losing your deposit. What Is a Down Payment? Your down payment is the amount you contribute toward the purchase price of your home when securing a mortgage. Minimum requirement : In Canada, the minimum down payment is 5% of the home’s purchase price. Anything less than 20% requires mortgage default insurance. Sources : Down payments can come from your savings, the sale of another property, RRSP withdrawals (through the Home Buyers’ Plan), a gift from family, or even borrowed funds. Example: How They Work Together Imagine you’re buying a $400,000 home with a 10% down payment ($40,000). When you make your offer, you provide a $10,000 deposit . Once conditions are met, that deposit is transferred to your lawyer’s trust account. At closing, you add the remaining $30,000 to complete your full down payment. The lender provides the rest—$360,000—through your mortgage. The Bottom Line Your deposit shows commitment and secures your offer, while your down payment is what makes the mortgage possible. Together, they work hand in hand to get you into your new home. 📞 If you’d like clarity on deposits, down payments, or any other part of the mortgage process, let’s connect. I’d be happy to walk you through it step by step.
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Is a 5% Down Payment a Mistake? Here’s the Unpopular Truth.

By Josh Perez • February 15, 2026
Discover why a 5% down payment isn’t always irresponsible. Learn when a low down payment is a smart financial move for Ontario homebuyers and when it’s a risk.