The Canadian real estate market is about to experience a seismic shift, and it’s not just the prices that are rising—new mortgage rules are about to shake things up! Starting December 15, 2024, the federal government is introducing changes that will pull homeownership within reach for many Canadians. Whether you’re looking to buy your first home or upsize, these reforms are ground-breaking and could be the gravitational pull you need to enter the market.

Raising the Bar: The New $1.5 Million Insured Mortgage Cap

For years, homebuyers faced the 20% down payment barrier when purchasing homes priced over $1 million. But now, with the uplifting new changes, the insured mortgage cap has been raised to $1.5 million. This means that homes valued up to $1.5 million are now eligible for mortgage insurance, allowing buyers to put down less than 20%—bringing down the pressure of saving for a massive deposit. For high-cost markets like Calgary, Toronto, and Vancouver, this is a weighty opportunity, particularly for those looking to upgrade or purchase their dream home  .

Lightening the Load: 30-Year Amortizations

Another ground-shaking change is the introduction of 30-year mortgage amortizations for first-time buyers and buyers of new builds. By stretching your payments over 30 years instead of the standard 25, your monthly payments will be significantly lighter. For example, on a $650,000 home, this could mean saving around $300 per month in mortgage payments. It’s a heavy lift in the right direction for buyers who need more breathing room in their budgets.

Gravity Check: What About Mortgage Insurance?

While these changes are great news for buyers, don’t forget about the gravity of mortgage default insurance. With a lower down payment, you’ll need to factor in the cost of mortgage insurance, which is tacked onto your mortgage. This insurance protects lenders, not buyers, in case of default, so make sure you weigh all the costs when calculating your homeownership budget .

What’s the Catch?

While these reforms make it easier to enter the housing market, it’s important to understand the long-term impact. A 30-year amortization means you’ll pay less each month, but over the course of your mortgage, you’ll end up paying more in interest. It’s a balancing act—you save on monthly costs but the overall price of the home could increase over time. That said, if your goal is to secure a home in a competitive market, these changes could provide just the lift you need .

What Does This Mean for Calgary Buyers?

For those in the Calgary real estate market, these changes are gravity-defying. With home prices inching up, especially in popular neighborhoods, the ability to buy with less than 20% down on homes up to $1.5 million is a game-changer. And with lower monthly payments on a 30-year amortization, this could be your chance to soar into homeownership more easily than before .

Looking to Defy Gravity? Let’s Talk!

Whether you’re a first-time buyer or looking to upsize, understanding these changes will help you make informed decisions. If you’re ready to make your homeownership dreams a reality, reach out today! I’m here to help you navigate these changes and keep your feet on the ground in Calgary’s dynamic real estate market.

Call Michael Newton at (403) 512-9825 or email michael@michaelnewton.ca for personalized advice on how these changes can lift your real estate plans to new heights.

Anchored in Service,

Michael Newton
Real Estate Advisor
michaelnewton.ca

In real estate, winning isn’t about luck. It’s about strategy, tenacity, and the willingness to take risks when others would back down. Too often, buyers and sellers settle for what’s easy or comfortable. They tiptoe around negotiations, hoping for an outcome that feels “good enough.” But here’s the hard truth: “good enough” never gets you the best deal. It gets you compromises, it gets you average, and it gets you regret.

The difference between those who settle and those who secure the deals that others only dream of is simple—they make bold asks. They’re not afraid to go big, and they certainly aren’t afraid to hear “no.” In fact, rejection is part of the plan. It’s the first checkpoint on the road to a deal that’s truly worth celebrating.

The Power of the Bold Ask
Think about it. In every negotiation, there’s a moment that defines the outcome. It’s the moment you decide to either take a stand or shrink back. The bold ask isn’t about being reckless; it’s about knowing your value and having the guts to put it on the table. It’s asking for that extra $10,000 on the sale, negotiating the repair credits, or pushing for the earlier possession date.

The reality is, people often avoid making bold asks because they fear the “no.” They don’t want to face rejection or seem too aggressive. But what they don’t realise is that every great deal starts with a bold move. The initial rejection? That’s not a failure—it’s the catalyst that kicks the real negotiation into gear.

Turning Rejection Into Opportunity
Rejection is a powerful thing, but only if you let it be. The moment you hear “no,” you have a choice: walk away, or lean in. For those who understand the game, rejection isn’t a stop sign; it’s a detour, a chance to regroup, rethink, and re-engage. It’s not the end of the conversation; it’s the start of the real one.

In real estate, this plays out every day. The first offer gets rejected? Good. Now you know where the lines are drawn. You come back with a counter that’s more strategic, more calculated, and closer to what you want. The sellers balk at your initial price? Perfect. Now they’re paying attention, and the real dialogue begins.

This isn’t just a tactic; it’s a mindset. It’s understanding that every “no” moves you closer to the “yes” that matters. And those who master this approach don’t just close deals—they dominate them.

Why Settling is Not an Option
For most people, the temptation to settle is strong. It’s easy. It’s comfortable. It avoids confrontation and feels like the path of least resistance. But in the end, it’s a trap. Settling gets you into a house that’s almost perfect, but not quite. It leaves money on the table in a sale that could have been more lucrative. It’s the shortcut that costs you in the long run.

If you’re serious about getting the best deal—whether you’re buying your dream home or selling to maximise your return—settling isn’t an option. The path to the best deal is paved with bold moves, calculated risks, and yes, a few rejections along the way. But every rejection is a chance to push harder, to refine your approach, and to secure the win you’ve been aiming for.

Embrace the Rejection, Claim the Win
This is the game of real estate. It’s not for the faint of heart, and it’s certainly not for those who fear the word “no.” But if you’re willing to embrace the rejection, if you’re willing to make the bold ask and push past the initial resistance, you will find yourself at the negotiation table with deals that others only wish they could secure.

So, the next time you’re in the market, remember this: the bold ask is your greatest tool. Rejection isn’t your enemy—it’s your ally. It’s the fuel that drives you closer to the deal you deserve. And when you finally hear that “yes,” it won’t be by chance. It will be because you had the courage to play the game the way it was meant to be played: with boldness, with strategy, and without fear.

Don’t just make a deal. Make the deal that counts.