New Downpayment Rules start February 1, 2016--5% up to $500,000; 10% for the portion over $500,000

If buying a home is on your list of to dos for 2016, then you may be affected by the new downpayment requirement rules announced by Finance Minister Bill Morneau.

As of February 2016, you will need a 10% downpayment for any portion of the home purchase price over $500,000.  The portion of the home purchase price up to $500,000 will continue to require 5%.

Homes under $500,000 will also continue to require a minimum of 5% down payment.

For example:

The government says that it is continuously monitoring the housing market, and is committed to implementing policy measures that maintain a healthy, competitive and stable housing market. It is felt that higher homeowner equity will play a role in this.

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