Exciting News for First-Time Home Buyers:
New 30-Year Amortization Option Available!


This week, we are joined by our guest writer Daniel Johanis- Founder and Principle Broker at Pekoe Mortgages.

Dan has been dedicated to helping Canadians save money and build generational wealth through real estate. He has been recognized for his expertise and has been featured in various prestigious publications including Canadian Mortgage Professionals, CTV News, Real Estate Wealth Magazine, The Toronto Star, Rogers TV, and The Wall Street Journal.

Originally from Toronto, Dan now resides in Paris Ontario with his wife, son, and furry companions. When not assisting clients with navigating the complexities of mortgages, he enjoys flying airplanes, practicing Brazilian Jiu Jitsu, and experimenting with culinary creations for his loved ones.

With his extensive knowledge in the world of mortgages, Dan is here to shed some light on the new opportunity for first-time home buyers that was announced on August 1st.

Without further ado, read on!


Effective yesterday, August 1st, 2024, there’s a new opportunity for first-time home buyers interested in purchasing newly built properties. The Department of Finance has announced that eligible first-time buyers can now access a 30-year amortization option for insured mortgages. This could mean lower monthly payments and more flexibility in your budget, making it easier for you to step into homeownership.

Here's what you need to know:

Eligibility Criteria:

  • Insured Loans Only: This option is available for insured loans with a loan-to-value (LTV) ratio of 80.01-95%, which means a down payment of less than 20%.

    • First-Time Home Buyer Criteria: At least one borrower must meet the following conditions:

      -Has never purchased a home before; or

      -Has not occupied a home as a principal place of residence in the last four years that they or their current spouse/common-law
      partner owned; or

      -Recently experienced the breakdown of a marriage or common-law partnership

  • Occupancy Requirement: At least one borrower must occupy the property.

Eligible Properties:

  • Property Types: The option is available for properties with 1 to 4 units, including newly built homes and condos. These can be owner-occupied or partially owner-occupied.

  • Insurance Premium: There is a surcharge of 0.20% on loans where the amortization is greater than 25 years.

  • Loan Types: This option is applicable for Purchase and Purchase Plus Improvement loans. However, it is not available for Small Rental and Secondary Home Programs.

What This Means for You:

When we shared this news on TikTok, the response was phenomenal, with over 140,000 views and numerous inquiries from eager buyers. It’s clear that people are hungry for solutions to make homeownership more accessible, and while this program might not be the complete answer, it's definitely a positive step forward.

If you’re considering buying a home, this is a great time to explore your options. Reach out to Keller Williams Home Group Realty or my team at Pekoe Mortgages to learn more about how this change could benefit you and your home-buying journey. Stay informed and ahead in the real estate game!

Daniel Johanis, Pekoe Mortgages


Thank you for joining us in this week’s guest blog. If you’re interested in discussing this opportunity further or have any questions on how this could benefit you as a first-time home buyer, don't hesitate to reach out or schedule an appointment through the calendar link below.

Have a great long weekend,

Paul


Appointment Calendar: https://calendly.com/homegrouprealty

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