Good news for lenders, builders & sellers (not buyers!):
Starting Dec 15, insured mortgages can now be up to:
- Home Price: $1.5M (up from $1M)
- Amortization: 30 years (up from 25 years) – only for first-time buyers and new builds.
See above infographic: Insured borrowers are more loyal, with only 6% switching lenders vs. 9%+ for uninsured. These new changes could increase insured market share from 20% to 25%-30% (back to 2019 levels).
So the real impact:
🔹Supporting home prices: More demand means supporting home prices—good for sellers & builders, but not for buyers. While buyers may afford more expensive homes with longer amortization, it could increase their overall debt, leading to more financial strain.
🔹Larger loans: Higher prices or smaller down payments result in larger loans, benefiting lenders.
🔹Easier securitization: Another win for lenders.
🔹More insured mortgages: More loyal customers, which is again good for large lenders.
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