The change– Effective in the new year, those lucky enough to be house hunting for a new home over $500,000 this effects you…. you will now be required have 10% minimum as a down payment (previously 5%) on insured mortgages.
Timeline for the new change – Feb. 15, 2016
The background for the change – “The governments role in the housing market is to set and maintain a framework that is equitable, stable & sustainable. This change addresses emerging vulnerability in certain housing markets, while not overburdening other regions” said finance minster Bill Morneau in his recent release “They also re balance government support for the housing sector to promote long term stability & balanced economic growth”
The key motive to ensure that homeowners have enough “skin in the game” (equity). For many of us middle class Canadians, our biggest investment is our home. This change will increase homeowners equity and will help keep our housing market stable and secure for years to come.
If you have any questions about the upcoming change, please get in touch and i will be happy to crunch some numbers with you 🙂