Prime Minister Justin Trudeau said his government will have news to announce on mortgages in Canada in the upcoming April 16 budget, but did not provide further details.
At a news conference Friday, Trudeau was asked by a reporter if his government would extend the amortization limit on insured mortgages to 30 years or more, beyond the 25 years currently in place.
The prime minister did not comment directly on that, but did say there is news on mortgages coming.
“On mortgages we will have more to say between now and the budget date on April 16, and perhaps we will save it for April 16,” Trudeau said.
Over the past two weeks Trudeau and his cabinet ministers have been making a series of pre-budget announcements on housing, but so far the majority have focused on rental housing.
Last week, Trudeau pledged that his government will ensure tenants get credit for on-time rent payments when they apply for a mortgage. “We’re going to amend the Canadian Mortgage Charter and call on landlords, banks, credit bureaus and fintech companies to make sure that rental history is taken into account in your credit score,” the release said.
Some experts have been advocating for extended amortization terms to assist young first-time homebuyers in accessing Canada’s expensive housing market.
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“Why do we tell a 35-year-old that they have to have their home paid off by the time they’re 60?” said Mike Moffatt, a policy director at the Smart Prosperity Institute and a former Trudeau economic adviser, in an interview with Bloomberg last month.
