Overview
Significant CMHC policy changes have taken effect in 2025, with a focus on increasing affordability, expanding insured mortgage access, and updating multi-unit loan insurance. These reforms directly affect both individual homebuyers and multi-unit property investors across Canada, with particular impact in high-cost urban markets.
Key 2025 CMHC Policy Changes
1. Higher Insured Mortgage Cap: $1.5 Million Limit
- Effective December 15, 2024, the maximum purchase price for a CMHC-insured mortgage increased from $1 million to $1.5 million.
- Applies to all Canadians needing high-ratio (less than 20% down payment) mortgage insurance.
- Especially impactful in high-priced markets like Toronto, Vancouver, and Montreal.
Down Payment Structure (Effective Dec 15, 2024):
- 5% on the first $500,000 of purchase price.
- 10% on the portion from $500,000 up to $1.5 million.
- Properties over $1.5 million are not eligible for CMHC insurance.
| Region | Old Max Insurable Value | New Max Insurable Value |
|---|
| National | $1,052,631 | $1,578,947 |
| Toronto | $1,052,631 | $1,578,947 |
| Vancouver | $1,052,631 | $1,578,947 |
2. 30-Year Amortization for First-Time Buyers and New Builds
- First-time homebuyers and buyers of new construction homes can now access 30-year amortizations on insured mortgages, up from the previous 25-year maximum.
- Longer amortization means lower monthly payments, increasing affordability for new entrants to the market.
3. Secondary Suites: New Insurability Rules
- Effective January 15, 2025, homeowners can access CMHC-insured refinancing to add secondary units (e.g., basement suites, laneway homes) under these conditions:
- Homeowner or close relative must occupy one of the existing units.
- No short-term rentals allowed for new units.
- Maximum of four dwelling units per property.
- “As improved” value of the property must be less than $2 million.
- Maximum loan-to-value up to 90%, including value added by new suite(s).
- Maximum amortization of 30 years.
- Additional financing cannot exceed project costs.
4. Multi-Unit Loan Insurance (MULI) Premium Updates
- Effective July 14, 2025: CMHC is updating its premium structure for all multi-unit loan insurance (including MLI Select).
- Premiums will now better reflect the risk profile of each project.
- New premium discounts for projects achieving measurable social outcomes (e.g., affordability, accessibility, or energy efficiency).
- Some financing structures—like bundling single-family homes—are no longer eligible under MLI Select, now requiring at least five units per application.
5. Market and Supply Initiatives
- CMHC emphasizes the need for increased housing supply, estimating that Canada must build 430,000–480,000 new homes annually to restore affordability by 2035.
- Ongoing reforms and policy adjustments are designed to support these ambitious construction targets.
Provincial Variations
- Eligibility and zoning for secondary suites are subject to local municipal regulations. Some provinces and cities may have additional requirements for legalizing new units.
- CMHC-insured mortgage rules are federal, but property transfer taxes, rebates, and other incentives may vary by province.
Summary Table: CMHC Policy Changes 2025
| Change | Effective Date | Key Details |
|---|
| Insured Mortgage Cap Raised | Dec 15, 2024 | $1.5 million limit, 5% down on first $500K, 10% up to $1.5M |
| 30-Year Amortization (First-time/Builds) | Dec 15, 2024 | Available to first-time buyers and new construction |
| Secondary Suite Insurability | Jan 15, 2025 | Up to 4 units, owner-occupied, max value $2M, 90% LTV, no short-term rentals |
| Multi-Unit Insurance Premium Update | July 14, 2025 | Risk-based premiums, discounts for social outcomes, stricter unit bundling rules |
Next Steps & Recommendations
- For homebuyers: Consider properties up to $1.5 million with as little as 5–10% down, and explore 30-year amortization if you’re a first-time buyer or purchasing a new build.
- For homeowners: Explore the new options for adding legal secondary suites and refinancing with CMHC insurance.
- For multi-unit investors: Review the new premium structure and eligibility rules for MLI Select to determine project feasibility.
- Stay informed: Provincial and municipal rules may affect your eligibility for certain programs or secondary suite approvals.
For the most competitive rates and to compare mortgage solutions from top Canadian lenders—including insured, uninsured, and multi-unit options—start your personalized application through theratefinder. Their multi-step platform ensures you access the best rates and tailored advice for your needs. Begin your application at theratefinder.ca/onboarding/email.