Breaking News: Finance Minister Announces Changes to Down Payment Requirements in Canada

THINK OUTSIDE THE BOX: 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).

New Down Payment Requirements are going into effect February 15, 2015.

Finance Minister Bill Morneau announced Friday that to “address emerging vulnerabilities in certain housing markets, while not overburdening other regions” the down payment requirement will be modified on purchases that exceed $500K.

For further information please click the following links below:

http://www.theglobeandmail.com/news/politics/liberals-raise-minimum-down-payments-for-houses-above-500000/article27711582/

http://www.cbc.ca/news/politics/morneau-home-ownership-finance-1.3360610

http://www.mortgagebrokernews.ca/news/finance-minister-announces-down-payment-rule-changes-200772.aspx

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