Under current federal rules, what is the longest amortization period any high-ratio insured homeowner mortgage in Canada can have?
Correct Answer
B) 30 years
Since the 2024 changes, s. 5(1.1) of the Insurable Housing Loans Regulations allows a high-ratio insured mortgage to be amortized over up to 30 years if any borrower is a first-time home buyer or the home is newly built. The standard limit is 25 years, but the longest any high-ratio insured homeowner mortgage can have is 30 years.
Why This Is the Correct Answer
This is correct because s. 5(1.1) of the Insurable Housing Loans Regulations permits up to 30 years for high-ratio insured mortgages where a borrower is a first-time home buyer or the home is newly built. No insured homeowner mortgage can go beyond 30 years.
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What is the standard maximum amortization period for an insured homeowner mortgage when no borrower is a first-time home buyer and the home is not newly built?
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