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By Jesse Gill

Mortgage changes to help first-time home buyers in Medicine Hat

Sep 17, 2024 | 5:53 PM

A housing expert says that changes to mortgage rules by the Canadian government will benefit first-time home buyers in Medicine Hat, but only if there’s any houses to purchase.

The updated rules come into effect in mid-December and will include the ability for a longer amortization period available to those buying new homes and first time home buyers.

The government touts today’s announced measures as the “boldest mortgage reforms in decades,” and it comes after a year of criticism over high housing costs.

Greg Keen, president of the Medicine Hat Real Estate Board, said Tuesday that in Medicine Hat the benefit will be seen by those looking to get their first home.

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“I think with the rule change of 30-year amortization for first-time home buyers, it’s certainly going to open up the qualifications of a first-time home buyer,” Keen said.

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“They can get approved for a little bit more than what they could have in the past, and it can also affect their affordability,” he added.

“It hopefully will be able to facilitate a few more first-time home buyer purchases.”

The federal government has also increased the cap on insured mortgages to $1.5 million from $1 million.

That will allow more purchasing power for people to buy higher priced homes with a down payment below 20 per cent.

‘Time will tell’

Keen said that inventory plays the largest factor on whether the market is busy in Medicine hat or not.

In August, there were 238 homes on the market in and around Medicine Hat, with 129 sales and, 158 new listings.

That’s down from a July inventory of 245 homes on the market, 146 sales and 165 new listings.

But, an even larger drop compared with 320 homes on the market in August of last year, with 150 sales and 200 new listings.

“That usually has the biggest effect in a market like Medicine Hat. Certainly this will have some bearing if there’s now more purchasers that are there, can have some pressure on inventory,” Keen said.

“We have seen very short-term, nothing to really go by yet, but the last couple of weeks we’ve seen an uptick in new listings, which is always good for buyers,” he added.

“Is that going to be sustainable? We don’t really know. Time will tell as far as what that’s going to look like.”

Keen said the market has seen prices increase over the last few years, but wasn’t sure what the future will hold.

He added that the fall is always a busy time, so it should be interesting to see what happens over the next month and a half.

Renters

Justice Minister Arif Virani is also releasing drafts for a bill of rights for renters as well as one for homebuyers, both of which the government promised five months ago.

Virani says the government intends to work with provinces to prevent practices like renovictions, where landowners evict tenants and make minimal renovations and then seek higher rents.

The Liberals have been slumping in the polls for months, including among younger adults who say not being able to afford a house is one of their key concerns.

— with files from the Canadian Press