Fox Marin Featured in NOW Toronto: Why New 30-Year Mortgages May Not Improve Affordability

Publication: NOW Toronto
Date: July 31, 2024
Topic: 30-year amortizations, first-time homebuyers, and housing affordability

About This Feature

Ralph Fox, Broker of Record at Fox Marin, was featured in NOW Toronto discussing the federal government’s new policy allowing 30-year amortization periods on insured mortgages for first-time homebuyers purchasing new-build homes.

The article explored whether the policy would meaningfully improve affordability for younger Canadians attempting to enter Toronto’s housing market. It also examined the challenges surrounding down payment requirements, rising new-build prices, and the growing disconnect between government housing policy and real-world market conditions.

Quotes from NOW Toronto

“Most developers, or almost all developers, especially in Toronto, when you buy a new home from them, they want at least 20 per cent. But insured mortgages are distributed to buyers who can’t afford a 20 per cent down payment. So you understand the conundrum

It is unlikely that those with insured mortgages will be able to purchase new-builds in Toronto, and even if they can, they still have to pay insurance premiums and interest over a longer period of time than on a resale property where amortization periods are 25 years. In addition, most pre-construction condos cost about $1,600 a square foot according to Fox, whereas a resale home is at about $1,000 a square foot.

New sales are 70 per cent below the 10-year average as a result, and the fact that buyers are going to have to put more than 20 per cent down to buy from a developer, that basically disqualifies anybody looking at this program”

— Ralph Fox, Broker of Record, Fox Marin

Fox Marin’s Perspective on the Market

Fox Marin’s perspective is that while extending amortization periods may slightly lower monthly payments, the policy itself does little to address the deeper affordability issues affecting first-time buyers in Toronto’s housing market.

The article highlighted what Ralph Fox described as a major contradiction within the policy. Although the program is intended to assist buyers with smaller down payments through insured mortgages, many Toronto developers already require down payments of 20 per cent or more for new-build purchases. As a result, many of the buyers who would qualify for insured mortgages may still be effectively priced out of the very properties the program is designed to support.

Fox Marin also emphasized the growing affordability gap between pre-construction and resale housing. According to Fox, new-build condos in Toronto are often priced significantly higher per square foot than resale properties, while also requiring larger deposits and longer financial commitments. Combined with higher carrying costs and insurance premiums, these factors continue to make homeownership difficult for many younger buyers despite new financing initiatives.

From Fox Marin’s perspective, improving affordability requires more than adjusting mortgage timelines. Broader structural issues including housing costs, supply constraints, financing conditions, and the economics of pre-construction development continue to shape accessibility within Toronto’s real estate market.

Why This Matters

Housing affordability remains one of the most significant challenges facing first-time buyers across the GTA. While government policy changes may generate headlines, their real-world impact depends heavily on how they interact with actual market conditions, pricing structures, and financing realities.

For buyers, the article highlights the importance of understanding the total cost of ownership beyond monthly mortgage payments alone. Deposit requirements, insurance premiums, carrying costs, and long-term affordability all play a major role in determining whether a property is truly accessible.

The article also reflects a broader conversation taking place across Toronto real estate about the gap between policy intentions and on-the-ground housing realities. As affordability pressures continue to affect younger buyers, strategic guidance and a clear understanding of financing options are becoming increasingly important when navigating the market successfully.

Read the Full Article on NOW Toronto