10 Listings That Show How Much More House You Can Buy With the New Mortgage Rules

By Josh Sherman | 5 minute read

Even without the recently announced increased cap to insured mortgages, first-time homebuyers can still purchase a detached home in some expensive Canadian markets — but it might be on the smaller side.

First-time homebuyers are getting a boost to their purchasing power with two new mortgage rules the federal government is rolling out on Dec. 15.

One change: allowing 30-year amortizations for all first-time homebuyers (and purchasers of pre-construction/new-build homes), up from the previous limit of 25.

Extending a mortgage over a longer period of time reduces the monthly payments — and the amount a homebuyer can afford up front. According to research from National Bank, this change has boosted the purchasing power for a typical buyer by anywhere from $22,000 to more than $50,000, depending on the province. Meanwhile, analysis provided to Wahi by Perch Mortgages found a typical first-time buyer can expect to pay $250 less per month with a 30-year amortization, compared to 25 years.

The second change raises the limit on insurable mortgages to $1.5 million. Homebuyers who can’t make a 20% downpayment must obtain mortgage insurance, and currently they’re limited to properties purchased for less than $1 million. As home values soared over the years in markets such as Toronto and Vancouver, this limit effectively barred some buyers — who might have otherwise qualified for a loan — from purchasing a single-family home.

The higher cap now opens the door for qualified homebuyers in Canada’s most expensive market to bid on single-family homes. That’s big news for households who are able to qualify for mortgages on homes priced north of $1 million (you’ll likely need an income above $200,000, something more than two million Canadian households brought home in 2022, according to data from Statistics Canada).

To demonstrate how the new insured-mortgage rule changes the choice available to first-time homebuyers, we’ve rounded up listings in several major Canadian housing markets. We’ve selected listings that are priced at least $100,000 below the maximum insurable amounts, pre- and post-rule change to provide some wiggle room for bidding competition. Check out the comparisons below.

Calgary

Before: 28 Walgrove Landing

Raising the cap on the maximum insurable mortgage amount was a move largely meant to help first-time  homebuyers shoulder the high cost of single-family homes in Ontario and B.C. markets rather than the Prairies. This side-by-side listing comparison illustrates why. With a budget of under a million, Calgary homebuyers can still shop around for a three-bedroom, nearly 2,300-square-foot detached house. That’s nothing to sneeze at.

After: 4 Rockcliff Point

By taking advantage of the forthcoming rule change, Calgary homebuyers could try upgrading to a much larger, four-bedroom, approximately 3,000-square-foot standalone home complete with all the bells and whistles. This Rocky Ridge home boasts a three-car garage, gourmet kitchen and pantry with wine storage, and a finished basement. The primary bedroom’s ensuite has the kind of features you’d expect to find in a multi-million-dollar Toronto or Vancouver home: heated floors, a three-sided gas fireplace, jetted tub, and rainfall shower.

Oakville

Before: 2450 Old Bronte Rd., unit 720

Oakville is home to some of the Greater Toronto Area’s most expensive neighbourhoods, and, as such, you might find yourself limited to a condo if your budget is below $1 million. Fortunately, the condos around this price point aren’t exactly entry level. Unit 720 at The Branch Condos has upscale finishes, including custom cabinets, quartz countertops, and high-end appliances. The seventh-floor suite has also got a 200-square-foot terrace.

After: 2609 Longridge Cres.

What a difference a cool half-million can make on your house hunt in Oakville. With a budget of $1.5 million, you could bid on a spacious four-bedroom detached home with a finished basement. There’s hardwood flooring throughout, and while some homebuyers may want to eventually update the kitchen, lots of work has already been done. Some $70,000 has been invested in upgrades, such as a stunning glass sunroom and stone driveway.

Toronto

Before: 56 Bow Valley Dr.

A sub-$1-million detached home has almost reached mythic status in Toronto, but there are still some out there — for now, at least. However, if you’re in the market for one, you’re going to have to make compromises.

Located in North York, outside the city’s core, this bungalow at 56 Bow Valley Dr. has been fully renovated, though its super-small footprint may not be to everyone’s taste.

After: 120 Fred Young Dr.

Add another $500,000 to your max budget, and you could be bidding on a two-storey, four-bedroom, 3,479-square-foot house nestled on a quiet enclave that backs onto a golf course. The backyard is perfect for entertaining at home, which is a good thing, since you may want to start budgeting for your higher mortgage payments.

Burnaby

Before: 3770 Thurston St., Penthouse 1

OK, it’s still a condo, but it’s an exclusive loft-style penthouse unit with two floors of living space. The 1,360-square-foot suite has two large bedrooms, while the main living area has soaring 17-foot ceilings. While living in a condo means close proximity to neighbours, the building only contains 17 other units, so it’s relatively private as these things go.

After: 5775 Hardwick St.

Duplexes are a popular way to afford B.C. real estate if you don’t want a condo. This duplex is brand new, and features a 1,280-square-foot main unit upstairs, with three bedrooms and an expansive balcony. The ground floor could be used as a mortgage-helping secondary suite given Vancouver’s tight rental market.

Vancouver

Before: 1907 Homer St., Unit 939

As in the pricier parts of southern Ontario, homebuyers limited to a six-figure mortgage will likely find themselves in condoland if they’re property hunting in Vancouver. That’s not exactly the worst place to be, though — especially when it means you get two bedrooms with a view, like you’ll find in Unit 939 at The Pinnacle condo development. 

After: 538 E 16th Ave.

Even armed with a higher insurable mortgage amount, options are limited in Vancouver. However, if you don’t want the constraints of a condo, you could get creative. Consider a duplex, for example, to afford the higher cost of ground-oriented homes in the city. The upgraded property contains two units, so you could rent out the lower level, live above, and net an extra $50,000 or more per year in passive income.