New Down Payment Rules For Home Buyers
Are you thinking of buying a new house in 2016? Well if the price of your dream home is $500,000 or more, you will now have to put a down payment of at least 10%, up from 5%. On Friday December 11, 2015, the Liberal government announced a change for insured mortgages. According to the article in The Globe and Mail, the new rules will take into effect February 16, 2016.
The new rules are a plan to try and cool off the housing market in both Toronto and Vancouver. Only 17% of home sales across Canada where between $500,000 and $1 million but that number was much higher in Vancouver 33% and Toronto 40%. Homes that sell for less than $500,000 will remain unchanged.
For more details see Liberals move to cool hot housing markets with new downpayment rules.