According to Robert McLister from Canadian Mortgage Trends, higher down payments may be on the way for Canadian homebuyers as early as the end of January. The Department of Finance is considering raising the minimum down payment to as much as 10%, which is double the current minimum.
There is also speculation they could use a graduated scale based on the mortgage amount or the purchase price. For example, there would be no change up to $500,000 but those up to $1 million would be subject to an increase. Regular readers of this Kitchener Waterloo real estate blog will know that 20% down is already required for purchases above $1 million.
What are the potential implications for Kitchener Waterloo real estate?
Simply put, for those buyers and sellers planning a 2016 move on a property above $500,000, it makes sense to act now. Why? Sellers will have access to a greater number of buyers and buyers will have less of a barrier to buying what may be their "forever" home.
As always, if you have questions about your real estate, feel free to call, text or email 519-505-4488 firstname.lastname@example.org.