New down payment rules to take effect on February 15th
In a bid to cool overheated portions of the housing market, Canada Mortgage & Housing Corp (CMHC) is implementing increased down payment requirements for government-insured mortgages effective February 15th. The change will only affect higher-priced properties in excess of $500,000. Here's how it will work;
the first $500,000 of purchase price will require the current 5% minimum down payment;
and the portion above $500,000 will now require a 10% down payment.
So, for example, a $700,000 home will now require a minimum $45,000 down payment in order to qualify as a government-insured mortgage (or 6.4% of the purchase price).
In a bid to cool overheated portions of the housing market, Canada Mortgage & Housing Corp (CMHC) is implementing increased down payment requirements for government-insured mortgages effective February 15th. The change will only affect higher-priced properties in excess of $500,000. Here's how it will work;
the first $500,000 of purchase price will require the current 5% minimum down payment;
and the portion above $500,000 will now require a 10% down payment.
So, for example, a $700,000 home will now require a minimum $45,000 down payment in order to qualify as a government-insured mortgage (or 6.4% of the purchase price).
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