The Government is raising the minimum down payment required for homes over the $500,000 purchase price.
With these changes, that come into effect in February 15, 2016, the purchase price of a home over $500,000 will require a 10% down payment on the amount over $500,000. This change in the rules for government-backed mortgage insurance is intended to contain risks in the housing market, reduce taxpayer exposure and support long-term stability.
The 5 per cent minimum down payment for properties up to $500,000 remains unchanged and Canadians who already hold mortgages will not be affected by this announcement.
The Government continuously monitors the housing market and is committed to implementing policy measures that maintain a healthy, competitive and stable housing market. Higher homeowner equity plays a key role in maintaining a stable and secure housing market.
The full Government news release can be found here.
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