The down payment rules have changed. The Government of Canada has increased the minimum down payment for purchases in Canada. If you’re thinking of buying 5% down, we would highly recommend to have an offer in place prior to Feb 15, 2016.
***Effective Feb 15, 2016 the required down payment will change and here is the breakdown of how it will affect you.
The minimum down payment for new insured mortgages will increase from 5% to 10%. This will be for the portion of the house price above $500,000, the finance ministry wrote.
For example: A $750,000 home will now require $50,000 down — 5% for the first $500,000 and 10% down for the remaining $250,000.
Properties up to $500,000 will continue to require a minimum of 5% down.
The changes are meant to reduce taxpayer exposure while supporting long-term stability of the housing market, according to the ministry.
This measure will increase homeowner equity. Which plays a key role in maintaining a stable and secure housing market over the long term,” Morneau said. “It also protects all homeowners, including many middle class Canadians whose greatest investment is in their homes.”
Check out the Toronto Rates today and see if you can qualify.
Watch the attached video for an even better detailed explanation.