As announced this morning by the Federal Finance Minister, the Federal Government is raising the minimum down payment for new insured mortgages to 10 per cent from 5 per cent for the portion of house prices above $500,000-$999,999.
The new rule will take effect on Feb. 15, 2016.
Down payment rules for mortgages for properties below $500,000 will be unchanged.
For example, a Buyer looking to purchase a $600,000 property:
- $25,000 for the $500,000 (5%)
- $10,000 for the extra $100,000 (10%)
- Total Minimum Down Payment = $35,000
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