Down Payment to Rise to 10% on Homes Over $500,000
Federal Finance Minister Bill Morneau announced changes to the CHMC 5% down payment program to take affect February 15, 2016. The government backed Canada Mortgage & Housing Corporation's program provides mortgage insurance to Canadians through lending institutions and is looking to reduce it's exposure in the market place by requiring buyers to increase their equity portion.
The Liberals have always expressed concern that home prices in certain Canadian real estate markets may be overheated, so they are increasing the minimum down payment required on a home in Canada from 5% to 10% on the portion of the purchase price over $500,000.
For a $600,000 home, the new 10% downpayment rule will apply…