Changes to the rules surrounding mortgages that come into effect Sunday should help more people enter the housing market as buyers, real estate experts say.

The changes, which were announced by the federal government back in September, include allowing first-time home buyers and buyers of newly built homes to draw out the length of their mortgages, among other things.

The updates, effective Dec. 15, are a good move, local mortgage broker Mary Sialtsis told the Star: “It’s going to open some new opportunities for buyers.”

What are the new rules?

For the first time since 2012, the price cap for mortgages insured against default has been increased, to $1.5 million from $1 million, to permit more people to qualify with smaller down payments.

Before this change came into effect, first-time buyers of homes purchased for over $1 million had to put at least 20 per cent down, but those buying for less than $1 million could put as little as five per cent down.

The updated rules also make first-time home buyers with insured mortgages, and any buyer of a new build, eligible for a 30-year amortizations — giving them more time to pay down the balance — as opposed to the 25-year limit faced by others.