As of 2026, a 30-year amortization on an insured mortgage is available to all first-time home buyers purchasing any home, and to all buyers of new construction homes regardless of whether they're first-time buyers. This expanded eligibility took effect December 15, 2024, according to the Department of Finance Canada. Before that date, the option was limited to first-time buyers purchasing new builds only, so a much smaller group of buyers could access the longer repayment period.
How the eligibility expanded
The 30-year amortization option for insured mortgages first rolled out on August 1, 2024, but only for first-time home buyers purchasing new construction. The Department of Finance Canada widened access on December 15, 2024, as part of a broader package of mortgage reforms introduced the same day. From that date forward, any first-time buyer can use a 30-year amortization on any home, resale or new build, and any buyer of a new build can use it as well, even if they've owned a home before.
Who counts as a first-time buyer
Eligibility for the first-time buyer category generally follows the standard used across federal home buying programs, meaning it's aimed at Canadians who haven't owned a home that they lived in, typically within a set recent period, or who are recently divorced or separated from a former co-owner. The exact eligibility criteria can affect whether you qualify, so your lender or mortgage broker can confirm how the definition applies to your specific situation before you apply for financing.
What counts as new construction
The new construction category applies to newly built homes, which opens the longer amortization to repeat buyers who wouldn't otherwise qualify under the first-time buyer rules. This was a deliberate part of the December 2024 reform package, intended to support new housing supply alongside affordability for buyers. Resale homes purchased by non-first-time buyers still fall under the standard 25-year maximum amortization available for insured mortgages, so the property type matters as much as buyer status.
The payment and interest trade-off
Stretching your amortization from 25 to 30 years lowers your required monthly payment, which can help with affordability and with qualifying under the mortgage stress test. The trade-off is that you'll pay more in total interest over the life of the mortgage, since you're carrying the balance for longer before it's paid off in full. It's worth running the numbers on both timelines, or asking a mortgage broker to model them for you, before deciding which amortization schedule best fits your long-term financial goals.
How this fits with the insured mortgage cap
A 30-year amortization is only available on insured mortgages, which means it applies to homes where the purchase price falls under the insured mortgage price cap and the down payment is below 20%. Homes priced at or above $1.5 million cannot be insured at all, so the 30-year option isn't available on those purchases regardless of buyer status or whether the home is newly built.
Deciding whether a longer amortization makes sense
Choosing a 30-year amortization isn't automatic just because you qualify for it. Some buyers use the longer schedule to lower their monthly obligation and free up cash flow, while others prefer a shorter amortization to reduce total interest costs, even if it means a higher payment today. A mortgage broker can walk through both scenarios with your actual numbers so you can make the choice that fits your budget and your plans for the property.
Have questions about your situation? An advisor can walk you through it.