About The 2016 Minimum Down Payment Changes

The Government of Canada's Finance Minister Bill Morneau announced on December 11, 2015 that there would be new down payments required.

The new rules are intended to cool the larger real estate markets in Canada (Toronto and Vancouver).

  • Purchases under $500,000 won't be effected. The minimum down payment required is still 5%.
  • Purchases over $500,000 will have their first $500,000 require 5% down, plus the remainder over $500,000 at 10% rate. The sum of that is the minimum down payment.
  • Purchases over $1,000,000 won't be effected by this recent change. These purchases will require 20% down minimum.

The Government's role in housing is to set and maintain a framework that is equitable, stable and sustainable. The actions taken today prudently address emerging vulnerabilities in certain housing markets, while not overburdening other regions. They also rebalance government support for the housing sector to promote long-term stability and balanced economic growth."

This measure will increase homeowner equity, which plays a key role in maintaining a stable and secure housing market and economy over the long term. It also protects all homeowners, including many middle class Canadians whose greatest investment is in their homes.

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