Mortgage rule changes are only a partial help, experts say

Experts say Ottawa's changes to mortgage rules could help spur demand among potential homebuyers, but supply challenges are likely to persist in Canada's real estate sector despite lofty goals to build new housing.

- SAMMY HUDES

The federal government's changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment. The price cap for insured mortgages is set to move to $1.5 million from $1 million, marking the first boost since 2012.

The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.