Sunday, 21 February 2016

Mortgage rules requiring more than 5% down on Canadian homes over $500K

Starting this month you'll need to put upwards five per cent down on a home selling for more than $500,000 in Canada. The new mortgage rules, announced last December by Finance Minister Bill Morneau, dictate that buyers must put down 10 per cent down on the portion of the home's price above $500,0000. The move's intended to keep housing prices affordable for anyone wishing to enter some of Canada's hottest real estate markets.
Buyers can still put down five per cent for homes $500,000 and under. For example, if you want to buy a $750,000 home, you'll need to have a minimum down payment of $50,000, which is what you get when you add five per cent of $500,000 and 10 per cent of the remaining $250,000.
Homes that cost more than $1 million still require a 20 per cent down payment.