New down payment rules will go into effect February 15, 2016.
“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,” Finance Minister Bill Morneau said in a release. “They also rebalance government support for the housing sector to promote long-term stability and balanced economic growth."
The minimum down payment for new insured mortgages will increase from 5% to 10% for the portion of the house price above $500,000, the finance ministry wrote.
For example: A $750,000 home will now require $50,000 down -- 5% for the first $500,000 and 10% down for the remaining $250,000.
Properties up to $500,000 will continue to require a minimum of 5% down. Properties in excess of $1 million will still require 20% down.
The changes are meant to reduce taxpayer exposure while supporting long-term stability of the housing market, according to the ministry.
Better get buying before February 2016 if you're looking at properties over $500,000!!! Call me today to get started. Let's get you HOME!
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** Thanks to Tammy Cartier for this information!