Canada Mortgage Changes 2025: What Homebuyers and Investors Need to Know
If you’re buying a home or working in real estate or finance, the 2025 mortgage rule changes in Canada are a game-changer. These new policies aim to improve housing affordability, increase mortgage flexibility, and help more Canadians access homeownership.
Below is a detailed breakdown of the top mortgage changes in Canada for 2025—and how they may impact your finances.
30-Year Amortization Now Available for First-Time Homebuyers (New Builds)
As of 2025, first-time homebuyers purchasing newly constructed homes can now access a 30-year amortization period—an increase from the previous 25 years.
Why it matters:
Longer amortization means lower monthly mortgage payments, making homeownership more accessible in today’s high-interest-rate environment.
RRSP Home Buyers’ Plan Increased to $60,000
The Home Buyers’ Plan (HBP) withdrawal limit has increased from $35,000 to $60,000. This allows eligible buyers to use more of their RRSP savings for a down payment on their first home.
Why it matters:
This is a major boost for affordability and financial planning, especially for younger buyers or couples.
Strengthened Canadian Mortgage Charter
The Canadian Mortgage Charter now includes clearer protections for borrowers. Lenders are encouraged to provide tailored mortgage relief for clients in financial difficulty and to support clearer communication around renewals and penalties.
Why it matters:
Homeowners facing economic challenges will find more transparent support options and improved access to relief.
Mortgage Stress Test Removed for Renewals with a New Lender
Previously, borrowers switching lenders at renewal had to pass the mortgage stress test again. As of 2025, this requirement is gone, encouraging more competition and better rates for consumers.
Why it matters:
You can now shop around at renewal time without risking rejection based on current income or interest rate conditions.
Key Takeaway: 2025 Mortgage Changes Aim to Unlock Affordability
These new mortgage policies in Canada are designed to make housing more attainable, support first-time buyers, and ease financial pressure during renewals.
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