Monday, December 14, 2015

Beginning February 2016,  Finance Minister, Bill Morneau, announced that Canadian Mortgage and Housing Corporation (CMHC) will be changing down payment rule requirements. The rule change will impact very few Canadians Morneau pointed to at the meeting. He expects less than 1% of the national housing market.

The new regulations will increase the minimum down payment from 5% to 10% on the portion of the home price greater than $500,000. The minimum down payment on the first $500,000 will remain at 5%.

For example: on a $600,000 mortgage the minimum down payment requirement would be $35,000. This is 5% of the first $500,000, and 10% of the remaining $100,000.

No other home purchasing segments are effected, including first-time home buyers, rental property purchases or anyone purchasing over $1 million whereby a 20% minimum down payment is required. Download 2016 homebuyers guide now

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