Who can choose a 30-year amortization?
The rules were changed in two steps. From 1 August 2024, 30-year insured amortizations were opened to first-time buyers purchasing new builds. In September 2024 the federal government announced the expansion that took effect on 15 December 2024: any first-time buyer (new or resale home) and any buyer of a newly built home, first-time or not.
- First-time home buyer — at least one borrower who has never bought a home, has not occupied a home owned by them or their current spouse or common-law partner in the last four years, or has recently experienced the breakdown of a marriage or common-law relationship.
- New build — a home that has not been previously occupied for residential purposes.
- Uninsured mortgages (20% or more down) — not covered by these rules at all; most lenders already offer up to 30 years.
What 30 years does to the payment
On a $700,000 home with the minimum $45,000 down, the 25-year mortgage is $681,200 (4.00% premium) and costs $3,939 a month at 4.94%. With 30 years the premium is 4.20%, the loan $682,510, and the payment $3,618 — $321 a month less. But over the full amortization you would pay $1,302,500 instead of $1,181,600: $120,900 more.
| Price (min. down) | 25 yrs / mo | 30 yrs / mo | Monthly saving | Extra lifetime cost | Lower income needed |
|---|---|---|---|---|---|
| $400,000 | $2,285 | $2,099 | $186 | $70,100 | $5,000 |
| $600,000 | $3,397 | $3,121 | $277 | $104,300 | $7,000 |
| $800,000 | $4,480 | $4,115 | $365 | $137,500 | $10,000 |
| $1,000,000 | $5,562 | $5,110 | $453 | $170,800 | $12,000 |
| $1,200,000 | $6,645 | $6,104 | $541 | $204,000 | $14,000 |
4.94% 5-year fixed held for the whole amortization; 30-year column includes the 0.20% premium surcharge. Income needed uses the stress test at 6.94%.
The real benefit: qualifying
For many buyers the payment saving matters less than the stress test. Because the qualifying payment is spread over 360 months instead of 300, the income needed for the same home falls by several thousand dollars — on the $700,000 example, about $9,000. That can be the difference between approval and rejection.
The trade-offs
30 years vs accelerated payments
Choosing 30 years and then paying accelerated bi-weekly (half the 30-year payment, $1,809, every two weeks) would pay the loan off in about 25 yrs 4 mo — a middle path between flexibility and total cost.
FAQ
Can first-time buyers get a 30-year mortgage in Canada?
Yes. Since 15 December 2024 first-time home buyers can choose a 30-year amortization on an insured mortgage (less than 20% down), for both resale and newly built homes.
Who counts as a first-time home buyer for the 30-year amortization?
At least one borrower who has never purchased a home, has not lived in a home owned by them or their current spouse or common-law partner in the last four years, or has recently gone through the breakdown of a marriage or common-law partnership.
Is there an extra cost for a 30-year insured mortgage?
Yes. CMHC adds a 0.20% surcharge to the premium for amortizations over 25 years, for example 4.20% instead of 4.00% with less than 10% down.
How much lower is the payment with 30 years?
On a $700,000 home with the minimum down payment at 4.94%, about $321 a month: $3,618 instead of $3,939.
Can I get 30 years with 20% down?
Yes. Uninsured mortgages are not covered by the insured-mortgage rules, and most lenders offer amortizations of up to 30 years to anyone with at least 20% down.
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Assumptions & sources
- Bank of Canada raised the target for the overnight rate by 25 basis points to 2.50% on 28 October 2026 (Bank Rate 2.75%, deposit rate 2.45%); next decision 9 December 2026. Big-bank prime rose to 4.70% on 29 October 2026.
- Typical rates: 4.94% 5-year fixed and 3.95% 5-year variable are the median of the 17 lenders listed in Ratehub.ca’s rate tables updated 2 November 2026 (fixed range 4.44%–5.99%, variable 3.68%–4.70%). Insured (high-ratio) mortgages often get slightly lower rates than uninsured ones.
- Fixed-rate payments use Canadian semi-annual compounding (Interest Act); variable-rate payments use monthly compounding, which most lenders apply to variable mortgages. Rates are assumed constant for the whole amortization.
- CMHC homeowner premiums on the loan amount: 4.00% above 90% loan-to-value, 3.10% for 85.01–90%, 2.80% for 80.01–85%, plus 0.20% for amortizations over 25 years. Provincial sales tax on the premium in Ontario (8%), Quebec (9%) and Saskatchewan (6%) must be paid in cash at closing.
- Minimum down payment (Department of Finance rules from 15 December 2024): 5% of the first $500,000, 10% of the portion from $500,000 to $1.5 million; 20% at $1.5 million or more, where default insurance is not available. 30-year insured amortizations: first-time buyers and buyers of new builds.
- Stress test: qualify at the greater of 5.25% or the contract rate + 2 points (OSFI Guideline B-20; the same floor applies to insured loans). Income needed uses CMHC’s 39% GDS / 44% TDS limits, property tax of 1% of the price a year and $100/month heating. Take-home pay: 2026 Ontario, from our Canada salary after tax engine.
- National average price: CREA, September 2026 ($666,538, −1.6% year over year).