Changes to downpayment rules

In an effort to slow down the hot real estate market, the federal government announced changes to the rules for government-backed mortgage insurance.

Effective February 15, 2016, the minimum down payment for new insured mortgages will increase from 5% to 10% on the portion of the house above $500,000 mark. The 5% minimum down payment for properties under $500,000 remains unchanged.

This will in effect increase the downpayment required to buy a property in the hottest markets in Canada, like Toronto and Vancouver, where prices are some of the highest in Canada.

(This was originally posted on the previous build of Move To Mississauga website)

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