Pamela Vasiliu
Sales Representative
pvasiliu@remax.net

RE/MAX Professionals Inc.
Brokerage
Independently owned and operated.

Date: Thursday August the 17th, 2017 
416-236-1241

 

   

What you should know about new Mortgage Rules

February 23, 2016 - Updated: February 23, 2016

As of Feb 15th 2016 homebuyers now face larger down payment requirements for properties over $500,000. The changes are intended to cool some of Canada’s heated real estate markets. Here is what you should know...

A down payment of 10 per cent on the portion of the price of a home over $500,000 is now required. For anyone buying a home for $700,000 — that means the minimum down payment will rise to $45,000 from $35,000. Any home under $500,000 still requires only a down payment of five per cent. Homes that cost more than $1 million still require a 20 per cent down payment.‚Äč
 
Who will be affected by this? Primarily those shopping for a home over the $500,000.00 range. First-time buyers may feel the impact since they will now be required to put down bigger down payments to get into the market. Buyers who are selling their homes in order to buy a larger one, likely won’t feel the pain since they’ve built up equity in those properties.
The expected impact the new rules will have over house prices is expected to be minimal. Finance Minister Bill Morneau said they are expected to affect one per cent or less of the real estate market.
 
A surge in sales was expected leading up to the change. buyers would be lured into purchase before the 15th so they may avoid making the bigger down payments. Sales activity has been strong in Ontario, B.C. and Quebec in the first five weeks of this year, however, a relatively mild winter and low mortgage rates contribute to the flurry of activity.
 
Past Measures -  changes were made to tighten eligibility rules for new insurable loans between 2008 and 2012. Among them: the minimum down payment was increased to five per cent, the maximum amortization period was reduced to 25 years from 30 years and the maximum insurable house price was limited to below $1 million.
 

Tagged with: junction triangle mortgage rules buying real estate selling homes houses purchasing borrowing lendong
| | Share

Powered by Lone Wolf Real Estate Technologies (CMS6)