Breaking Down the New 30-Year Amortization Rules in Canada: What Ontario Buyers Need to Know

If you're a first-time homebuyer in Ontario, you've probably heard some buzz about the new insured 30-year amortization option. While this exciting new extended repayment period can offer some much needed flexibility, the rules aren’t as simple as “everyone qualifies.” 

At Walker Mortgages, we coach you through these rules so you don’t fumble the fine print. In this blog, I’ll break it down and show you exactly how these changes apply to you—especially if you're buying in Simcoe, Norfolk, Haldimand, or anywhere in Southern Ontario.

Before we jump into this, remember this is for high ratio insured mortgages, if your putting more then 20% down, nothing has changed

Who Qualifies for 30-Year Amortization?

The 30-year amortization is now available for first-time homebuyers purchasing owner-occupied properties with less than 20% down (high-ratio mortgages).

Let’s break down the key conditions:

• 🔹 At least one borrower must qualify as a first-time homebuyer

• 🔹 The home must be owner-occupied, not a rental property

• 🔹 Loan-to-value (LTV) must be greater than 80%

• 🔹 Available on all eligible mortgage products, including new construction

Who Is a First-Time Homebuyer, Really?

Think it’s just your first home? There are some more options.

According to the Home Buyers’ Plan standard, you qualify as a first-time buyer if you haven’t owned a principal residence since January 1st of the fourth calendar year before closing.

🧠 Example: If your home closes on July 15, 2025, you must not have owned a home since January 1, 2021.

And no, not all borrowers need to meet this test—just one borrower on title.

What If There’s a Divorce or Separation?

Good news if you're starting fresh.

If you’ve experienced the breakdown of a marriage or common-law relationship, you may still qualify if:

• You've lived separate and apart for at least 90 days prior to the closing date

• You have not lived in your new partner’s home as a principal residence

It’s similar to the exceptions used in the RRSP Home Buyers Plan—an important route for those in transitional life stages.

Living Arrangements: Who Must Occupy the Property?

If the first-time homebuyer on the application won’t be living in the home, then the co-borrower who is moving in must be:

• A spouse or common-law partner

• Or a legal parent-child relationship

And yes, they must occupy the home rent-free. We can not use rental income on your application.

Can I Use the 30-Year Amortization on New Construction?

Yes! Nothing has changed for new builds. If you're buying pre-construction in a high-ratio scenario and meet the eligibility rules, you’re good to go.

🏗️ Tip: We can help pre-approve you now and hold your rate—even if your closing is months away.

When It’s NOT Available

Let’s clear up where the 30-year amortization does not apply:

• ❌ Investment Properties: Must be owner-occupied to qualify

• ❌ Portfolio Insurance Deals: Still capped at 25 years amortization

If you’re not sure where your deal fits, that’s where we come in.

Let’s Make This Simple

At Walker Mortgages, we:

• ✅ Walk you through every eligibility rule

• ✅ Prepare your lender package for success

• ✅ Confirm your pre-approval includes the 30-year option (if it helps)

• ✅ Build a custom Property Finance Sheet so you know your monthly payment with a 25-year vs. 30-year term

📞 Book a discovery call to see if you qualify:

👉 Schedule here

📊 Use our Calculator Hub to preview payments over different amortization periods.

🏡 Final Word: It’s Not Just a Longer Mortgage—It’s Strategic Flexibility

For the right buyer, a 30-year amortization can provide lower monthly payments and breathing room in your budget. But it’s not one-size-fits-all—and it’s definitely not something the banks will fully explain.

Let’s make sure it works for you and fits your goals—not just today, but long term.