New Down Payment Rules For Home Buyers

liberal

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.

Related: Are You Fit to Buy a Durham Region Home?

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.

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