Are you looking to buy your first home, or upgrade your current home? If you’re considering a mortgage through Coastal Community, it’s important to be aware of some important changes that came into effect in 2024.

The Canada Mortgage and Housing Corporation (CMHC) is working to make homeownership more accessible and affordable, especially in high-priced housing markets like Vancouver Island. The government’s objective is to make policy changes to help increase home construction across Canada and encourage people to buy newly constructed homes to help increase housing supply and potentially stabilize prices—a benefit for all buyers. When houses are more affordable, it’s easier for first-time buyers to enter the market, especially in regions like ours, with higher home values.

How can the CMHC mortgage changes help you?

Here’s how first-time home buyers and current homeowners can benefit:

Homeowners looking to upgrade a home

CMHC mortgage changes make it easier for homeowners to upgrade and include the costs of renovating a home at time of purchase. Making the most of your space, upgrading your kitchen or bathroom, replacing the roof or windows, or building a rental suite can add value to your home and supplement your income—a smart financial decision!

Don’t wait until you think you can afford it. When you’re purchasing a home or switching your mortgage to Coastal Community, ask us about your options to incorporate your future renovation costs into your mortgage. You can also choose to refinance your mortgage or take out a low-interest loan to cover the cost of renovations. While you’re at it, consider lowering your heating bill by making your home more energy-efficient. The government has grants and interest-free loans to help you. Learn more.

First-time home buyers

If you’re struggling to get into the housing market in Canada, the government has made some helpful changes to mortgage application rules. Here’s one: as a lifelong renter, you may have a history of paying rent on time that can help get your mortgage approved. Financial institutions are now expected to take your history as a responsible renter into consideration.

You might feel like the biggest hurdle to get into the housing market is your down payment. With the increase in how much you can withdraw from your RRSP for your down payment, it’s looking more possible to get into the housing market. Make sure you take advantage of these two ways you can save up the down payment on your first home:

First Home Savings Account – save up to $8,000/year, tax-free**

• Save up to $40,000 for your down payment, tax-free, and you don’t have to pay it back.
• Option to convert your FHSA to an RRSP if you don’t buy a home
• Here’s a secret: even if you never buy a house, you can still benefit from the FHSA tax credit each year!

Home Buyers’ Plan – withdraw up to $60,000 from your RRSP

The withdrawal limit was increased from $35,000. Now both you and your spouse can withdraw up to $60,000 each, for a total of $120,000 as a down payment. And you won’t have to start putting the money back into your RRSP until after the five-year grace period.

"It's crucial to get the right advice on how much you can afford, so you can set realistic goals for your down payment and your first home purchase. Having someone sit down with you to explain the mortgage process, how to get approved, and what payments would be comfortable for you is invaluable. Starting is better than not starting—reach out to us today!" ~ Brenda Carmichael, Lending & Sales Development Assistant Manager.

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*Coastal Community may provide a competitive mortgage rate upon qualification when switching your mortgage.

** You can contribute up to $8,000 per year to your FHSA, with a lifetime limit of $40,000.