Are you thinking of purchasing a home?
It seems there has been some confusion on the recent changes with the new rules for downpayment. Last minimum down payment rules for homes priced over $500,000 has increased. For new insured mortgages, it increased from 5 per cent to 10 per cent ONLY on the portion above $500,000 and not on the entire home purchase price. The minimum down payment for homes with price of $500,000 and below remains unchanged. the
Photo Credit CBC News
Here's another example
A $600,000 home now require the following down payment,
5% for the first $500,000 = $25,000
10% for remaining $100,000 = $10,000
Total of $35,000 down payment is now required. This is just a $5,000 change from the previous rule.
This handy downpayment chart will provide a guide for homes between $500,000 and $1,000,000-
Home Price Downpayent
What does this mean for buyers for homes over half a million dollars? They just need to save up a little bit more for the downpayment. On a positive note, the down payment is deducted anyway from your mortgage. So this will result in a reduced, more manageable, lower monthly mortgage payments.
I would be happy to provide more details should you have any questions. Please feel free to call or message me via www.HomesCondosGTA.ca
Your Century 21 Real Estate Professional -