Under the current insured mortgage rules, eligible first-time buyers in Ontario can choose a longer amortization even with a modest down payment. For buyers who felt locked out by rising values it can be the difference between waiting and buying.
The upside
- A longer amortization means lower monthly payments, which matters most when affordability is the main concern.
- With the insured mortgage cap where it is now, buyers in Ontario have extra flexibility on homes that were previously out of reach with a small down payment.
The other side
- A longer amortization means you pay interest for more years, so the total cost of the mortgage goes up.
- Because the mortgage is insured, the insurance premium sits on top of the loan itself.
- Qualification rules stay strict, and the option is limited to a home you will live in.
- The right length depends on how these choices fit your long-term goals, not just on this year's budget.
Where to go from here
Compare the 25- and 30-year payment on the affordability calculator, then read choosing your mortgage amortization for how to shorten it later without a penalty. The first-time buyers page covers the rest of the insured rules.
This article is general information, not financial advice, and quotes no rates. Your situation may differ; speak with a licensed mortgage professional.