Amortization Changes For 2025

Today we're going to talk about some exciting new rule changes that have just been announced.

Effective December 15th, 2024, the government has now authorized a 30 year amortization for people who have less than 20% as a down payment. The current maximum amortization is 25 years, so it's changing to 30 years. There are some stipulations to who qualifies for this new rule.

First Time Homebuyers - if you're a first time homebuyer, you qualify with an amortization of 30 years using less than 20% for the down payment on any property that you purchase, effective December 15th. If you are not a first time homebuyer, but you're buying a newly built property that's never been lived in and you're using a down payment of less than 20%, you can now qualify for an amortization of 30 years as well.

Why does this benefit you? Well, and amortization period is what is used to dictate your monthly mortgage payment. So a longer amortization is going to make the cost of homeownership a little more affordable for you. Reducing your mortgage payment. And it's going to also help you to qualify for a slightly larger mortgage size with that reduced monthly payment.

As always, reach out to our team if you have any questions. We are always here to help.

Have a beautiful day!