Knowledge centre
The trigger rate is generally reached when the fixed payment no longer covers the required interest. The trigger point relates to the mortgage balance reaching the lender’s permitted loan-to-value or equity threshold.
Possibly, but not automatically. FCAC expects federally regulated institutions to consider waiving prepayment penalties when appropriate for qualifying consumers in severe financial difficulty.
A federally regulated lender may consider extending amortization as a relief measure, but FCAC expects the extension to be for the shortest period appropriate and accompanied by a plan to restore the amortization when possible.
FCAC expects federally regulated institutions not to charge interest on interest when a consumer receives qualifying mortgage relief under the exceptional-circumstances guideline.
FCAC expects federally regulated lenders to consider appropriate available measures, but it does not prescribe one solution or guarantee approval of a deferral, fee waiver, amortization extension or penalty waiver.
Usually yes. The longer amortization can reduce the required payment, but CMHC applies a 20-basis-point insurance-premium surcharge to eligible 30-year insured mortgages, and slower principal repayment can increase total interest.
It may. The federal insured-mortgage definition includes a relationship-breakdown pathway, but that does not automatically create eligibility under the FHSA, HBP, GST/HST rebate or Ontario land-transfer-tax refund.
Potentially yes. A buyer can meet the 30-year insured-mortgage eligibility through the newly built property test even when they are not a first-time buyer, subject to lender and insurer approval.
An Ontario first-time-buyer refund application generally must be received within 18 months of the conveyance or disposition. The maximum provincial refund is $4,000 for qualifying transactions.
The agreement, construction, ownership and application dates all matter. For a builder purchase, the agreement generally must be on or after March 20, 2025, and the rebate application usually has a two-year deadline.