“There are a lot of areas, particularly in the Greater Vancouver area and in the Greater Toronto Area, where you have no choice but to build up, so the possibility for new builds are not the same across the country.”
Will it help first-time home buyers?
Ratesdotca mortgage and real estate specialist Victor Tran also raised concerns about how effective the change would be based on the eligibility criteria.
“While it’s currently possible to get an insured mortgage with a new build, it’s rare,” he said in a statement.
Tran also pointed out many properties in Vancouver and Toronto are priced at more than $1 million, which typically means buyers have to take uninsured mortgages.
But Canadian Home Builders’ Association CEO Kevin Lee said the announcement would be a “game changer.” The group has also been in favour of longer amortization periods, saying five more years would help with affordability and spur more construction.
“This measure will also go a long way to enable our sector to respond to the government’s goal of getting 5.8 million new homes built over the next decade,” he said in a statement.
“This measure is needed now to help turn the market around, and will be needed for many years to come if we are to work towards doubling housing starts.”
He said the rental market should see some relief too, as the move could enable some Canadians to stop renting and become home owners.
