New rules coming into effect for down payment.

New changes to the rules for government-backed mortgage insurance to contain risks in the housing market. Effective February 15, 2016, the minimum down payment for new insured mortgages will increase from 5 per cent to 10 per cent for the portion of the house price above $500,000. The 5 per cent minimum down payment for properties up to $500,000 remains unchanged. Same time Minister Morneau also highlighted the increases in guarantee fees for Canada Mortgage and Housing Corporation (CMHC). Canadians who already hold mortgages will not be affected by this announcement and this will strengthen the resiliency of Canada’s housing finance system to promote long-term stability and balanced economic growth. Properties valued at $1 million and above require a minimum down payment of 20 per cent.

 

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Tarlochan Sidhu

Tarlochan Sidhu

REALTORĀ®
CENTURY 21 Coastal Realty Ltd.
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