More downpayment for $500k + home purchases.
December 11, 2015 | Posted by: Jay Meakin
Pay attention if you are looking to buy a home in the +$500k price range. New Down Payment Requirements are going into effect February 15, 2015.
Finance Minister Bill Morneau announced today that to “address emerging vulnerabilities in certain housing markets (Vancouver & Toronto), while not overburdening other regions” the down payment requirement will be modified on purchases that exceed $500K.
Beginning in February, insurers will require a 10% down payment on the portion of any mortgage over $500,000. The five per cent rule remains the same for the portion under $500,000. This means someone looking to buy a $750,000 home would need to have a minimum down payment of $50,000 (which is five per cent of $500,000, plus 10 per cent of the remaining $250,000).
Call Jay @ 403-861-7399 for more info.