New 30-year mortgage rule will benefit homebuyers, says Halifax mortgage broker

First-time homebuyers in the Maritimes can now get a 30-year mortgage on new builds and resale homes, thanks to a new federal rule.

Halifax-based mortgage broker Bruce Lusby says the federal government’s decision to extend amortization will benefit everyone.

“By stretching the mortgage out, you can make monthly mortgage payments a little bit smaller and a little bit more manageable,” says Lusby. “I do think it’s a good thing.”

Lusby says it comes at a time when people need it the most.

“With the housing crisis and home prices going up so high, every little bit helps to allow someone looking to buy their first home, to be able to afford it,” says Lusby.

Some Maritimers approve of the decision. One Halifax woman says the new rule is a better option for people.

“It allows you more time to pay it off without having to worry about interest rates fluctuating when you have to renew in five years,” she says.

But according to Trish McCourt, executive director of the Nova Scotia Non-Profit Housing Association, resources should be utilized elsewhere.

“I personally think that it would be more effective to direct more of those funds to programs that will help get homes built to begin with,” says McCourt. “We still haven't been able to meet the demand as far as new builds go. Especially in that lower end of the market."

McCourt says another new mortgage rule taking effect on Jan. 15 that will give people the ability to refinance their home to add a secondary suite is “helpful.”

“But what we really need to see is a much larger investment in community housing across the board,” says McCourt.