First-time homebuyers looking to purchase a new home can now take advantage of 30-year mortgages.

The new measure, previously announced in the 2024 federal budget and effective August 1, 2024, extends the mortgage amortization period from 25 to 30 years for first-time buyers of newly built homes.

To qualify, at least one applicant must be a first-time homebuyer, defined as someone who has:

• never purchased a home before
• not owned and occupied a home as a principal residence in the last four years
• recently experienced the breakdown of a marriage or common-law partnership

The property must be newly constructed and not previously occupied for residential purposes, though newly constructed condominiums with interim occupancy periods are included.

This measure applies to high-ratio mortgages (where the loan exceeds 80 per cent of the home price) on owner-occupied properties.

Lenders are expected to start offering these 30-year mortgages immediately.

All existing eligibility criteria for government-guaranteed mortgage insurance remain unchanged.