Minimum downpayment will increase for purchases over $500,000
Finance Minister Bill Morneau announced changes to the rules for government-backed mortgage insurance this week.
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.
The announcement represents a graduated approach to increasing the down payment requirement proportionally to the cost of a home. Canadians who already hold mortgages will not be affected by this announcement.
If you are planning to buy a home in the near future and have questions about how you might be affected by these changes, ASK ME!
I would be happy to assist you and find financing that is right for your needs.