New Down Payment Rules Effective February, 2016

If you want to buy a home in 2016 you’re going to need to know about the new minimum down payment requirements announced in December of 2015.

Effective February 15, 2016, the minimum down payment for new insured mortgages will increase from five per cent to 10 per cent for the amount of the purchase price above $500,000. For the first $500,000 of the purchase price the minimum down payment remains at 5%.

In other words, if you’re purchasing a home for $1 million the first $500,000 requires 5% for the down payment and the second $500,000 requires 10% for the down payment. The total down payment would increase from $50,000 minimum to $75,000 minimum.

Read more about the down payment requirements in New Down Payment Rules: Time to Exhale at CanadianMortgageTrends.com