Under the federal Insurable Housing Loans Regulations, what is the maximum amortization period for an insured high-ratio mortgage used to buy a home?
Correct Answer
D) 25 years, or up to 30 years for a first-time buyer or a newly built home
Section 5(1) of the Insurable Housing Loans Regulations limits a high-ratio insured loan to an amortization period that does not exceed 25 years, and s. 5(1.1) allows up to 30 years if any borrower is a first-time home buyer or the property is newly built. The Department of Finance made this 30-year option available to all first-time buyers and all buyers of new builds effective December 15, 2024.
Why This Is the Correct Answer
Section 5(1) caps high-ratio insured loans at a 25-year amortization, and s. 5(1.1) permits up to 30 years if any borrower is a first-time home buyer or the property is newly built. Both parts are needed for a complete answer.
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