Some of Canada’s priciest housing markets have become more accessible due to new alterations to the country’s mortgage landscape. This has eased the entry barrier for potential homeowners. Real estate experts believe this will be a significant shift for some buyers, as they will now be able to afford a mortgage for a home valued over $1 million with a smaller down payment.

However, how much additional purchasing power Canadians gain from a higher insured mortgage limit and broader availability of 30-year amortizations will differ from family to family and market to market. The previously announced federal government changes aimed at making it easier for certain Canadians to qualify for a mortgage will come into effect on Sunday.

The changes will allow all Canadians considered first-time homebuyers, as well as those buying new properties, to take out an insured mortgage with a 30-year amortization period, an increase from the usual 25 years. This will lower the qualification threshold for a mortgage and decrease monthly payments, making home loan costs slightly more manageable.

Another significant change is an increase in the price cap under which Canadians can take on insured mortgages, or mortgages with a high loan-to-value ratio. These mortgages enable Canadians to pay less than 20 per cent upfront on a home’s purchase price, reducing the savings barrier for buyers. Under the new rules, Canadians can get an insured mortgage on anything priced at $1.5 million or lower, up from the previous cap of $1 million. This means that buyers will find it easier to save for a home in some of Canada’s most expensive markets, such as Toronto and Vancouver.