If buying a home is on your list of to dos for 2016, then you may be affected by the new downpayment requirement rules announced by Finance Minister Bill Morneau.
As of February 2016, you will need to have 10% downpayment for any portion of the home purchase price over $500,000. The portion of the home purchase price up to $500,000 will continue to require 5%.
Homes under $500,000 will also continue to be require a minimum of 5% down payment.
Down payment required to purchase a $700,000 home
5% on $500,000 = $25,000 + 10% on $200,000 = $20,000
Down payment required = $45,000
The Government says that it is continuously monitoring the housing market and is committed to implementing policy measures that maintain a healthy, competitive and stable housing market and that higher homeowner equity plays a key role in maintaining a stable and secure housing market.
If you want to know exactly what this change will mean to your home purchase plans in 2016, I’d be more than happy to discuss your home-ownership goals in further detail. Talk soon!