Speaking in Toronto on Thursday, Finance Minister Chrystia Freeland announced the federal government will allow 30-year amortization periods on insured mortgages for first-time homebuyers purchasing newly built homes.

The change will take effect Aug. 1.

Under the current rules, if a down payment is less than 20 per cent of the home price, the longest allowable amortization — the length of time a homeowner has to repay their mortgage — is 25 years.

"Faced with a shortage of housing options and increasingly high rent and home prices, younger Canadians understandably feel like the deck is stacked against them," Freeland said in a news release.

"By extending amortization, monthly mortgage payments will be more affordable for young Canadians who want that first home of their own."

Mortgage Professionals Canada CEO Lauren van den Berg called it a "step in the right direction" and said extending the amortization period "will help level the playing field for first-time homebuyers."

"We know that this is going to allow greater opportunities for home ownership and will ultimately contribute to economic revival and economic recovery," she said in an interview.

"But more still needs to be done for all Canadians to have that dream of home ownership within sight."

Full details here:
https://ca.finance.yahoo.com/news/canada-allow-30-amortization-first-152125524.html