Starting on February 15, 2016, the Federal Government is doubling the minimum down payment for insured mortgages to 10% from 5% for the portion of a home’s value from, $500,000 to $1-million. Down payment rules for mortgages on properties selling for less than $500,000 will be unchanged.
The government had already restricted mortgage insurance to homes values at less than $1-million, and the new rules leave the minimum down payment for more expensive homes unchanged at 20%. According to the Finance Minister, Bill Morneau, the new rule will help create stability for the overall market, as well as help ensure Canadians take the right approach to investing in a home.
- source, The Globe and Mail