The federal government has decreed higher downpayments for those buying between $500,000 and $999,999 and here's my take.
Clearly, this was a 'surgical strike' aimed primarily at the sizzling sellers markets in Toronto and Vancouver. A common theme of this Kitchener Waterloo real estate blog is markets are local.
So how will this affect Kitchener Waterloo real estate?
I expect minimal impact locally as the average detached home is selling for about $420,000. As a result, first-time buyers are able to get into the market for well under $500,000 and they will continue to be able to buy with 5% down. For move-up buyers, I always suggest a minimum downpayment of 20% to avoid CMHC insurance premiums. I've lost business by suggesting it may not be prudent to buy a $500,000 home with just 5% equity.
In short, if this new policy affects you locally, it's a choice you've made.
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