A first-time home buyer in Alberta is buying a resale home with a CMHC-insured mortgage. What is the maximum amortization period permitted?
Correct Answer
B) 30 years
Under s. 5(1.1) of the Insurable Housing Loans Regulations, an insured mortgage may amortize over more than 25 years, up to 30 years, if any borrower is a first-time home buyer or the property is newly built. Since December 15, 2024 this covers all first-time buyers, including those buying resale homes, so the maximum here is 30 years; other insured purchases remain limited to 25 years.
Why This Is the Correct Answer
The buyer is a first-time home buyer, so s. 5(1.1) of the Insurable Housing Loans Regulations allows the insured mortgage to amortize over up to 30 years, even on a resale home.
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