Can You Get a 30-Year Mortgage in Ontario? 2027 Rules

Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty

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By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 10 min read — Who qualifies for a 30-year amortization in Ontario in 2027, what it costs, and a GTA example comparing 25 and 30 years.

Short answer

Yes. In Ontario you can get a 30-year amortization with less than 20% down if you are a first-time buyer or buying a newly built home under $1.5 million, with a 0.20% higher CMHC premium. With 20% or more down, most lenders offer 30 years at their discretion. You must still pass the stress test.

This guide is for Ontario buyers, especially first-time buyers and people buying a newly built home, who want to know if they can stretch their mortgage to 30 years in 2027. You will get the exact eligibility rules as of November 2026, a worked GTA example with real numbers, and an honest look at what the extra five years cost.

Can you get a 30-year mortgage in Ontario?

Yes, but not everyone can, and the answer depends on your down payment. First, a quick definition. In Canada, “30-year mortgage” almost always means a 30-year amortization. That is the total time it would take to pay the loan to zero. It is not the same as your term, which is the length of your current contract and rate, usually five years or less. So a 30-year mortgage is really a series of shorter terms, renewed again and again.

The rules split into two groups:

Less than 20% down (an insured mortgage): the normal maximum is 25 years. You can get 30 years only if you are a first-time buyer or you are buying a newly built home.
20% or more down (an uninsured mortgage): there is no federal 25-year cap. Each lender sets its own maximum, and many go to 30 years.

The federal government widened the 30-year option on 15 December 2024. Before that, it was limited to first-time buyers of new builds. These are still the rules in place as of November 2026.

Who qualifies for a 30-year insured mortgage in 2027?

If your down payment is under 20%, your mortgage must carry default insurance, and the insurer’s rules decide your amortization. CMHC allows 30 years when the loan is more than 80% of the home’s value and at least one of these is true.

You are a first-time homebuyer

At least one borrower must meet one of these tests, based on CMHC’s Home Start rules:

You have never bought a home in Canada, or
In the current year and the four calendar years before it, you did not live in a home as your main residence that you, or your current spouse or common-law partner, owned, or
You recently went through a marriage or common-law breakdown (CMHC looks for a separation of at least 90 days that started within that window).

So a person who sold their last home six or more years ago can often count as a first-time buyer again. Check the exact dates with your lender before you count on it.

You are buying a newly built home

A newly built home is one that has never been lived in. You do not need to be a first-time buyer for this route. For new condos, CMHC still treats the unit as new if the only person who lived there was you, during interim occupancy before the condo was registered.

The other conditions

The price must be under $1.5 million, the cap for insured mortgages since 15 December 2024.
You or a close relative must live in the home.
You still need to pass the stress test and stay within CMHC’s debt limits: 39% of gross income for housing costs and 44% for all debts.
CMHC charges an extra 0.20% on the insurance premium when you choose the 30-year option.

Your situation	Down payment	Maximum amortization
First-time buyer, any home under $1.5M	Under 20%	30 years (premium +0.20%)
Any buyer, newly built home under $1.5M	Under 20%	30 years (premium +0.20%)
Repeat buyer, resale home	Under 20%	25 years
Any buyer, any price	20% or more	Set by the lender, often up to 30 years

Source: Department of Finance Canada (September 2024 backgrounder); CMHC purchase and Home Start eligibility pages; FCAC, mortgage terms and amortization. Rules as of November 2026.

How much does a 30-year amortization cost compared with 25 years?

Let me run a real GTA example. The median condo townhouse in Mississauga sold for $689,300 from January to October 2026, according to TRREB MLS data via REALM. A first-time buyer puts down the minimum: 5% of the first $500,000 plus 10% of the rest, which is $43,930. That leaves a loan of $645,370, so the CMHC premium rate is 4.00% (or 4.20% with the 30-year surcharge).

For the rate, I used 4.44%, the lowest insured five-year fixed rate listed on Ratehub on 2 November 2026. Treat it as an illustration, not a quote. The figures below assume that rate holds for the whole amortization, which it will not, but it shows the gap clearly.

Item	25 years	30 years
CMHC premium (added to loan)	$25,815	$27,106
Ontario 8% sales tax on premium (cash at closing)	$2,065	$2,168
Total mortgage	$671,185	$672,476
Monthly payment at 4.44%	$3,692	$3,367
Balance owing after five years	$588,689	$612,076
Total interest if 4.44% held throughout	$436,557	$539,748

Source: my calculations; price from TRREB MLS data via REALM, January–October 2026; premium rates from CMHC; rate from Ratehub, 2 November 2026. Monthly payments, semi-annual compounding.

The 30-year option saves about $325 a month. In exchange, you owe about $23,387 more after five years, and you pay roughly $103,000 more interest over the life of the loan if the rate never changes. The extra premium and tax are small next to that.

Free tool — what can you actually afford?

How much more house can you qualify for with a 30-year mortgage?

Lenders do not qualify you at your actual rate. They use the higher of 5.25% or your contract rate plus 2 points. At a 4.44% contract rate, that is 6.44%. Because the payment at 6.44% is lower over 30 years, you can qualify for a larger loan.

Here is a simple test. Say your income supports $3,500 a month in mortgage payments at the qualifying rate. Over 25 years, that supports a loan of about $525,375. Over 30 years, about $562,177. That is roughly $36,800 more borrowing power from the same income.

That extra room can be the difference between a one-bedroom and a one-plus-den. It can also tempt you to stretch further than your real budget. My guide to the mortgage stress test walks through the qualifying maths in more detail.

Can you get a 30-year mortgage with 20% down?

Usually, yes. When you put 20% or more down, the mortgage does not need default insurance, so the 25-year insured cap does not apply. FCAC says the lender decides the maximum amortization in that case. Many lenders offer 30 years on uninsured purchases, but it is the lender’s choice, not a right.

Two things to know:

The rate can be a little higher. Uninsured mortgages are usually priced above insured ones. Compare the rate, not just the payment.
The stress test still applies. OSFI requires federally regulated lenders to qualify uninsured borrowers at the greater of the contract rate plus 2% or 5.25%.

For example, on a $980,000 loan at an illustrative 4.69%, the payment is about $5,528 over 25 years and $5,050 over 30 years. That frees up about $478 a month, but interest over the full life of the loan rises by about $160,000 if the rate stays put. If you are unsure whether to stop at 20% or put down more, my piece on the minimum down payment in Ontario shows the exact amounts by price.

Does a 30-year mortgage make sense in the 2027 GTA market?

Prices have come down, but carrying costs have not. TRREB MLS data via REALM for January to October 2026 shows detached medians down year over year in most GTA cities, for example Brampton down 8.9% to $950,000 and Mississauga down 5.8% to $1,225,000. Condo apartment medians fell further, such as Brampton down 12.6% to $415,000.

At the same time, the Bank of Canada raised its policy rate to 2.50% on 28 October 2026, and five-year bond yields, which drive fixed rates, rose through September and October. A longer amortization is one of the few tools a buyer has to make the monthly numbers work when prices soften but rates rise.

My take

I see 30 years as a cash-flow tool, not a plan to stay in debt longer. If you are a first-time buyer and the 30-year payment lets you buy the right home instead of the wrong one, it can make sense, as long as you would pass comfortably at 25 years too. Pick a mortgage with good prepayment privileges, and when your income grows, raise the payment. I tell clients to treat the 30-year payment as the floor, not the target.

What are the downsides of a 30-year amortization?

More total interest. In the example above, about $103,000 more over the full amortization.
Slower equity. You owe more after each term. That matters if prices dip and you need to sell or refinance.
A bigger premium. The 0.20% surcharge on an insured loan adds to the balance, and the Ontario sales tax on it must be paid in cash.
Less room later. If you need to stretch again at renewal, you have already used up the longest amortization.

Watch out

The 30-year option on an insured mortgage is about the purchase. If you later switch lenders and extend your amortization or borrow more, FCAC warns that a new insurance premium may apply. And a payment that only works at 30 years, with nothing left for repairs, condo fee increases or a rate rise at renewal, is a warning sign, not a green light.

How can you pay off a 30-year mortgage faster?

You can get most of the benefit of a 25-year mortgage while keeping the safety of a 30-year minimum payment:

Use prepayment privileges. Most closed mortgages allow yearly lump sums and payment increases up to a set limit without a penalty.
Choose accelerated payments. FCAC notes that accelerated weekly or biweekly payments add up to about one extra monthly payment a year.
Shorten at renewal. When your term ends, you can choose a shorter remaining amortization if your budget allows.
Put windfalls on the mortgage. A bonus or tax refund used as a lump sum cuts years off.

Read the prepayment terms before you sign. They vary a lot by lender, and that is one area where a mortgage broker or bank specialist can compare options for you.

What to do next

Check whether you meet the first-time buyer or new-build test, using your exact ownership dates.
Run your numbers at both 25 and 30 years, and at the qualifying rate, not just today’s rate.
Budget cash for the Ontario sales tax on any CMHC premium, plus the rest of your closing costs.
Look at the first-time buyer programs in Ontario that can stack with a longer amortization.
Speak with a licensed mortgage professional before you make an offer. This article is general information, not personal financial advice.

Need help with this? Talk to me.

I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].

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Frequently asked questions

Can you get a 30 year mortgage in Ontario?

Yes. In Ontario in 2027, a 30-year amortization is available on insured mortgages (less than 20% down) to first-time buyers and to anyone buying a newly built home, as long as the price is under $1.5 million. With 20% or more down, most lenders also offer 30 years, but each lender sets its own maximum.

Who qualifies for a 30 year amortization in Canada?

In Canada, as of November 2026, you qualify for a 30-year insured amortization if at least one borrower is a first-time homebuyer or the home is newly built and never occupied. The loan must be over 80% of the value, the price under $1.5 million, and you must pass the stress test. Uninsured borrowers depend on the lender.

Does a 30 year amortization cost more for CMHC insurance?

Yes. CMHC adds 0.20% to the premium rate when you choose a 30-year amortization. On a $645,370 loan with 5% to 10% down, the premium rises from 4.00% ($25,815) to 4.20% ($27,106). In Ontario, 8% sales tax on the premium must also be paid in cash at closing.

Is a 30-year mortgage a good idea for a first-time buyer in Toronto?

A 30-year mortgage can help a first-time buyer in Toronto lower the monthly payment and qualify for a larger loan, but it costs much more interest. In a 2026 Mississauga example, it saved about $325 a month yet added about $103,000 of interest over the full term. It works best if you prepay when you can.

How much lower is the payment on a 30-year vs 25-year mortgage?

On a $600,000 mortgage at 4.44%, the payment is about $3,301 a month over 25 years and $3,004 over 30 years, roughly $297 less. The trade-off is interest: about $481,600 over 30 years versus $390,300 over 25 years, if the rate stayed the same. Figures are illustrations, as of November 2026.

Can I get a 30 year amortization if I already own a home?

Yes, in two cases. If you put 20% or more down, the lender can offer 30 years. With less than 20% down, you can get 30 years if the home is newly built and never occupied, or if you have not lived in a home you or your spouse owned during the current year and previous four years.

Can I switch from a 25 to a 30 year amortization at renewal?

Sometimes. At renewal in Canada, some lenders will let you extend your remaining amortization, but on an insured mortgage FCAC warns a new insurance premium may apply if you extend or borrow more when switching lenders. Extending also adds thousands of dollars of interest. Ask your lender and a licensed mortgage professional before deciding.

Does a 30-year amortization help me pass the mortgage stress test?

Yes. Because the qualifying payment is spread over more years, a 30-year amortization lowers the payment lenders test at the greater of 5.25% or your rate plus 2 points. In one example, $3,500 a month at 6.44% supports about $525,000 over 25 years and $562,000 over 30 years.

Are 30-year fixed-rate mortgages available in Canada?

Not in the American sense. In Canada, a 30-year mortgage almost always means a 30-year amortization paid through a series of shorter terms, usually five years or less, each renewed at the rate of the day. Terms longer than five years exist but are less common and can carry heavy penalties if broken early.

Can You Get a 30-Year Mortgage in Ontario? Who Qualifies in 2027