Effective December 15, 2024, As part of the mortgage reform to make housing more affordable in Canada the Canadian government is implementing significant changes to mortgage regulations in efforts to make homeownership more accessible. Here's what this change means for People hoping to buy homes after December 15 2024.

The Current maximum property value eligible for insured mortgages is  $1 million and as of December 15 2024 this will be increased  to $1.5 million. This adjustment is supposed to reflects current housing market realities, in high-priced areas like Vancouver and Toronto, enabling more buyers to qualify for a mortgage with a down payment of less than 20%. 

Previously, homes priced over $1 million required a minimum 20% down payment, Which put pressure on homes under a million.  With the new cap, buyers can now make a down payment as low as 5% on the first $500,000 and 10% on the portion between $500,000 and $1.5 million. For example, purchasing a $1.5 million home would now require a minimum down payment of $125,000, compared to the previous $300,000 requirement.

 This change opens up a wider range of properties to buyers who may have been previously priced out, particularly in expensive markets. 

The Canadian government's recent mortgage reforms, effective December 15, 2024, have also sparked discussions among experts regarding their potential not so great implications as well, as a cautionary tale for allowing Canadians to indebt themselves further and if this is helping or not in the long run. 

Some concerns are does this have the potential to increase housing prices? By raising the insured mortgage cap from $1 million to $1.5 million and extending amortisation periods to 30 years for first-time buyers and purchasers of new builds, more individuals may enter the housing market. This surge in demand, without a corresponding increase in housing supply, could drive up property prices, further exacerbating affordability issues. 

 Elevated Household Debt Levels Longer amortisation periods, which is another one of the December 15th implementations being made by the Canadian Government to make homes more affordable. The result is in lower monthly payments which could lead to an increase the total interest paid over the life of the mortgage. This could lead to higher overall household debt, making homeowners more vulnerable to financial strains, especially if interest rates rise in the future. Which given how fast interest rates where raised over 2023/2024 is something Canadians are still feeling the negative affects of in the current state of monthly mortgage costs. 

 Insufficient Addressing of Housing Supply Shortages While the reforms aim to make homeownership more accessible, they do not directly tackle the underlying issue of limited housing supply. Without significant efforts to increase the number of available homes, particularly in high-demand urban areas, affordability challenges may well persist. It’s helpful for families can live closer to work, schools etc and some areas that maybe this cap kept them away from before and forced home buyers into smaller mortgages under 1 million into outlying areas where there was more options. 

Potential for Increased Financial Strain on Homebuyers Allowing buyers to take on larger mortgages with smaller down payments might lead to financial overextension. In the event of economic downturns or rising interest rates, these homeowners could face difficulties meeting their mortgage obligations, increasing the risk of defaults. Now with the carrot of something larger and shiny within home buyers grasps will they spend more than they should? 

In conclusion while the December 15 mortgage reforms are designed to enhance Canadian homeownership opportunities, many in the field caution that without concurrent measures to boost housing supply and ensure responsible borrowing, these changes could accidentally worsen existing pain in Canada's housing market.

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If you are the Christmas person in your neighbourhood and you decide to move to a strata and plan to put out your regular array of lights, trees, music and ornaments a key piece to enjoying your holidays is checking the strata’s seasonal bylaws when you review strata regulations before you firm up your purchase. 

Its easy to forget when its a sunny July day when you decide to down size to the perfect little strata property but some home buyers have had a bit of a shock if they later find out that the strata’s holiday regulations don’t allow for all holiday festivities you may want to decorate the exterior of your home and yard with. These holiday  bylaws exist in many strata corporations. Why might you ask? The answer is Strata corporations in Canada often implement bylaws or rules regarding holiday decorations to maintain a consistent appearance, ensure safety, and respect all residents' rights.

Below are potential bylaws or rules that may restrict what owners can do with Christmas or other holiday decorations that have been seen in Strata developments: 

 1. Timing Restrictions

• Installation Period: Decorations can only be put up starting a specific date (e.g., December 1) and must be removed by a set deadline (e.g., January 7).

• Daily Timing: Lighted decorations may only be illuminated during certain hours (e.g., 6 PM–10 PM).

2. Placement Rules

• Common Areas: No personal decorations are allowed in common areas such as lobbies, hallways, or shared outdoor spaces unless pre-approved by the strata council.

• Balconies and Exteriors: Restrictions may limit what can be displayed on balconies, doors, or visible exterior windows to avoid visual clutter.

• Prohibited Fixtures: Rules may prohibit affixing decorations using nails, screws, or adhesives that can damage the property.

3. Size and Type of Decorations

• Size Limitations: Oversized inflatables, large displays, or decorations that obstruct views or passageways may be prohibited.

• Light Restrictions: Limitations on the type (e.g., only LED lights) or color schemes to maintain uniformity.

• Prohibited Items: Certain items such as loud sound systems, excessively bright lights, or moving decorations (e.g., motorized Santa displays) may not be allowed.

4. Safety Considerations

• Electrical Hazards: Decorations must meet safety standards (e.g., CSA-approved lights) to prevent fire risks. Overloading electrical circuits may be explicitly prohibited.

• Blocking Access: Decorations that obstruct emergency exits, pathways, or stairs are typically banned.

• Secured Items: Decorations must be securely fastened to prevent hazards from wind or falling objects.

5. Inclusivity and Neutrality

• Non-Religious Emphasis: Strata corporations may require decorations in common areas to be neutral and inclusive, avoiding overtly religious symbols like nativity scenes or menorahs.

• Equal Opportunity: If decorations are allowed, they may need to represent multiple holidays (e.g., Christmas, Hanukkah, Kwanzaa) to reflect the diversity of residents.

6. Noise and Disturbances

• Prohibited Sound Effects: Decorations emitting sounds, music, or automated greetings may be restricted to prevent disturbance to neighbors.

7. Approval Process

• Pre-Approval for Major Displays: Owners may need to submit a proposal for elaborate or unique decorations for strata council approval.

• Fines for Non-Compliance: Bylaws may include fines for unauthorized decorations or failure to remove them by the specified deadline.

8. Eco-Friendliness

• Energy-Efficient Lighting: Some strata may require the use of energy-efficient lighting to align with sustainability initiatives.

• Waste Management: Rules may govern the disposal of decorations, such as Christmas trees, to ensure proper waste handling.

9. Enforcement of Bylaws

• Reporting Mechanism: Residents can report bylaw violations, and the strata council is responsible for enforcement.

• Progressive Penalties: Non-compliance might result in warnings, followed by fines or orders to remove decorations.

For some Clients the ability to do Christmas decor the way they want is a deal breaker on a sale so thats why I always advise to thoroughly review all strata documents to make sure that things like holidays rules and bylaws line up with your home holiday goals. 

Some significant changes to mortgages in Canada.

This year was for first time home buyers. On August 1st, they announced that for first time home buyers, instead of only a 25 year amortization period, they would be eligible for a 30 year amortization period. Essentially, the length of time it takes you to pay off your mortgage was increased.

Therefore, the idea is to lower your monthly payments, making it easier to get into, however, the flip side is that you will also pay over a longer period of time, which means more interest over time. The idea was to get more Canadians that are first time home buyers into new builds- so they did it on new construction.

Then on September 16th, they actually expanded this. Not only first time home buyers, but buyers of all new builds are eligible for a 30 year amortization. The idea is that these will take effect on December 15th this year and hopefully get more Canadians who are first time home buyers and more Canadians into the market on new builds. It's definitely an incentive for new home builds as well- and increasing the Canadian housing supply.

So we will see how this, turns out.

For anybody who's shopping for a mortgage in the next couple of months, this is something that your mortgage broker is probably going to chat to you about.