Proposed changes to remove price caps and extend amortizations on insured mortgages will help renters break into the ownership market, Ottawa argues, but experts are raising flags about the impact on home prices.

Proposals unveiled Monday, which one expert called “some of the most significant mortgage policy reforms that we have seen in many years,” will affect first-time buyers, those buying a newly constructed home and anyone taking out an insured mortgage.

First-time homebuyers, as well as those purchasing new builds, will soon be able to take out insured mortgages with a 30-year amortization, up from the typical 25-year payback period.

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By Craig Lord  Global News