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Shot in the Arm Coming for Canada's Mortgage Market

Eight weeks from now, Ottawa will start letting insured first-timer buyers and insured new-build buyers stretch their payments for five more years. It's government-approved repayment procrastination designed to get buyers buying and builders off the couch and onto a construction site.

The move from 25- to 30-year insured amortizations will boost buying power 7%+ for those who qualify. Which, in Toronto or Vancouver, might get you an extra closet or that premium doorknob you've been eyeing.

Insured rule changes will also mean fatter mortgages and better volumes, precisely what lenders and originators have been waiting for. In fact, if fixed rates cooperate, Q1 could be the mortgage industry's hottest first quarter since 2021—when "transitory inflation" was still a thing.

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