The Globe and Mail reports in its Saturday edition that the federal government's relaxed mortgage rules unveiled this month will give first-time home buyers a helping hand by lowering down payments and offering longer amortizations. The Globe's David Berman writes that while this is good news for home buyers, it could be even better news for banks, which stand to benefit from surging demand for bigger loans that take longer to pay off. The changes, which take effect Dec. 15, will raise the price cap for insured mortgages to $1.5-million, up from $1-million previously. As well, all first-time home buyers will be eligible for 30-year mortgage amortizations, up from 25 years. Forget about mandatory 20-per-cent minimum down payments on homes that cost more than $1-million. In the details released this week, home buyers can put down as little as 5 per cent on the first $500,000 of the purchase price. For the remaining portion up to $1.5-million, the minimum down payment is 10 per cent. One thing is clear: The smaller the down payment, the bigger the loan. "All told, mortgage rule tweaks will encourage already-levered households to borrow more, for longer," BMO Capital Markets senior economist Robert Kavcic said in a note.