The $1.5 Million Game Changer: Why You No Longer Need $240k Cash to Buy a Home in Surrey
Date: December 13, 2025 | Category: Market News, First-Time Buyers | Reading Time: 5 Minutes
For the last decade, buying a family home in Surrey, Langley, or Vancouver came with a massive barrier. If the purchase price was over $1 Million, you had to put 20% down. No exceptions.
For a $1.2M townhouse, that meant saving $240,000 in cash. For many high-income families who could easily afford the monthly payments, that lump sum was impossible to save while paying high rents.
As of December 15, 2025, that rule is history.
At Kraft Mortgages, we are already pre-approving clients under these new federal rules. Here is how they unlock the market for you as a First-Time Home Buyer BC.
Change #1: The Insured Mortgage Cap Hits $1.5 Million
The federal government has raised the "Insured Mortgage Cap" from $1 million to $1.5 million.
This means you can now buy a home up to $1.5M with less than 20% down. You simply pay the mortgage default insurance (CMHC) premium, which is added to your mortgage balance.
The Real-World Impact (The $1.2M Townhouse)
Here is how the math changes for a standard family home in the Fraser Valley:
📊 DOWN PAYMENT COMPARISON
The Verdict: You can now get into the same home with $145,000 LESS cash upfront. This allows you to keep your savings for renovations, furniture, or investments.
Change #2: 30-Year Amortization for All First-Time Buyers
Previously, if you put less than 20% down (an "insured" mortgage), you were capped at a 25-year amortization. This forced your monthly payments higher and made it harder to qualify.
The New Rule: All First-Time Home Buyer BC (and buyers of new construction homes) can now access 30-Year Amortizations, even with a small down payment.
Why this matters: Stretching the loan by 5 extra years lowers your monthly payment and boosts your borrowing power. It's often the difference between qualifying for a condo or a townhouse.
Who Does This Help Most?
1. The "High Income, Low Savings" Buyer
Professionals in Vancouver/Surrey who make good money but haven't been able to save a quarter-million dollars. As your local Mortgage Broker Surrey, we see this every day.
2. Upgraders
Families moving from a condo to a townhouse/detached home who want to keep some equity in their pocket rather than dumping it all into the Down Payment Rules 2025.
3. New Construction Buyers
Investors and residents buying presales in Calgary or Edmonton can also leverage the 30-Year Amortization to improve cash flow.
The Window is Open
Inventory in the $1M - $1.5M range is about to see a surge in demand as thousands of buyers realize they now qualify under the new Insured Mortgage Cap rules.
Do you want to beat the rush?
Re-calculate your buying power under the new December 15th rules
📅 Book a Strategy CallYou might be ready to buy today.
About Varun Chaudhry
Licensed mortgage broker with over 18 years of experience in the Canadian mortgage industry. Specializing in MLI Select, construction financing, and self-employed mortgages across BC, AB, and ON.