# What are the regulatory implications of the Dec 2024 reforms on short terms?

> Dec 2024 reforms raised the insurable cap to $1.5M and extended 30-year amortization to first-time buyers and new builds — short-term fixed renewals now qualify under the expanded framework.

Category: Renewal
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/renewal/what-are-the-regulatory-implications-of-the-dec-2024-reforms-on-short-terms

## Answer
**Breakdown Table: Minimum Down Payment on a $1.5M Purchase (Insured)**

| Component                | Amount           | Rate  | Calculation            |
|--------------------------|------------------|-------|------------------------|
| First Portion            | $500,000         | 5%    | $500,000 x 0.05 = $25,000 |
| Remainder                | $1,000,000       | 10%   | $1,000,000 x 0.10 = $100,000 |
| **Total Down Payment**   | **$125,000**     |       | **$25,000 + $100,000 = $125,000** |

*Note: Under the Dec 2024 reforms, insurable mortgages up to $1.5M now use the 5%-on-first-$500K / 10%-on-remainder tiered minimum down-payment formula (previously capped at $1M).*

## Related guide
- https://ratellow.com/guides/short-term-fixed-renewal

## Sources
- BANKOFCANADA — https://www.bankofcanada.ca/2025/07/staff-analytical-note-2025-21/#Introduction
- OSFI-BSIF — https://www.osfi-bsif.gc.ca/en/news/backgrounder-final-capital-adequacy-requirements-guideline-2026