New Rules Regarding Downpayment in Canada
The Government of Canada’s Finance Minister Bill Morneau announced on December 11, 2015 that there would be new down payments required.
The new rules are intended to cool the larger real estate markets in Canada (Toronto and Vancouver).
- Purchases under $500,000 won’t be effected. The minimum down payment required is still 5%.
- Purchases over $500,000 will have their first $500,000 require 5% down, plus the remainder over $500,000 at 10% rate. The sum of that is the minimum down payment.
- Purchases over $1,000,000 won’t be effected by this recent change. These purchases will require 20% down minimum.