On December 15th, 2024 the Federal Government increased the $1 million price cap for insured mortgages to $1.5M meaning a 20% minimum down payment is no longer needed for properties with a purchase price of up to $1.5M. They also expanded the eligibility for 30-year mortgage amortizations to all first-time homebuyers and to all buyers of new builds.

TKMG has already seen this initiative benefit our clients, but instead of us telling you about it, we’d thought it’d be better to hear it directly from the source…

Tell us about your decision to start the journey of home ownership

When I immigrated to Canada in 1998, it was common to see people owning the homes where they raised their families. However, since my family had just moved to Vancouver, owning a home wasn’t an option for us at the time. I always imagined that as I grew older and established a solid career, I’d eventually own a home where I could raise my own family.

When Dimitria and I started dating, we began renting an apartment. Not long after, we brought two energetic and dearly cherished cardigan corgis into our home. Having more space for our dogs and future family became a dream for us. The challenge was that it took few years to find good career job, and by then, the housing market seemed to increase drastically every year, making homeownership seem out of reach.

What was your original plan when considering buying?

In order to achieve our dream of homeownership and provide a high standard of living for our future family, we initially considered moving to Calgary. The housing there is more affordable and there are plenty of options available. During our visit to Calgary for a few weeks, we discovered that it had a lot to offer, making it a great alternative for us.

What did these changes allow you to do/consider?

Owning a home in Vancouver has always been our preference, but at first, we couldn’t see a way to afford a house while maintaining the quality of life we wanted for our family. The recent government changes have given us hope that staying in Vancouver is possible, allowing us to remain close to our friends and family.

How did your plan change after the new rules change were implemented?

One of the biggest hurdles to homeownership in Vancouver is saving for the down payment. With most homes in the Lower Mainland priced over $1M, the old rules required a minimum down payment of 20%, which meant $200k+ needed to be saved (not including the closing costs). However, things shifted in our favour when the government raised the limit for CMHC insured mortgages from $1M to $1.5M, reducing the down payment requirement to as low as 8.5% of the purchase price. While it’s still a significant amount, it’s half of what we would have needed before the change. Additionally, the ability to amortize over 30 years helped improve our cash flow, making it easier to maintain a good standard of living while servicing the mortgage.

What is one thing you’d recommend to anyone considering buying a home in BC?

We weren’t fortunate enough to inherit generational wealth, so everything we used to purchase our home was the result of careful investing. We’d highly recommend taking full advantage of government registered accounts like the FHSA, TFSA and RRSP. We’d also strongly encourage others to learn how to invest wisely, so their money grows at a solid risk-to-reward pace. The down payment amounts can be so high that saving up the full amount can feel nearly impossible. It’s important to factor in how long it would take to save and how the real estate market might grow during that time. 

What are you most looking forward to as you build your life in your new home?

We are most looking forward to the peace and quiet of suburban life, where we can have our own space and get creative with making it feel like home. We are excited to build lasting memories as our family grows and to enjoy the freedom to shape our environment in a positive way.

What was the funniest/most interesting thing that happened doing your home search?

At one of the homes we visited, the Agent shared an interesting detail – there’s a bear that frequently crosses the backyard. In fact, the homeowners had left a section of the fence open to make sure the bear wouldn’t have to climb over it!

You can read more about these changes on the Governments website  or reach out to TKMG if you have any questions!