How the New Rules for Homes over $500,000

 

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 February 15, 2016 the 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. 

 

 

Photo Credit: CBC.ca/News

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 

  $500,000              $25,000

  $600,000              $35,000

  $700,000              $45,000

  $800,000              $55,000

  $900,000              $65,000

  $999,999              $75,000

 

 

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 -

Jessica Sarte

 

Jessica Sarte

Jessica Sarte

REALTORĀ®
CENTURY 21 Millennium Inc., Brokerage*
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