CANADA’S NEW DOWN PAYMENT RULES
In an effort to slow down Canada’s hot real estate markets and promote stability, the federal government has announced new down payment rules for purchasing homes between $500,000 and $1,000,000. As of February 15, rather than the current minimum of 5% down, home buyers will be required to provide a 10% down payment on any new, government-insured mortgage above $500,000.
According to CIBC World Markets’ deputy-chief economist, Benjamin Tal, the new rules are not likely to affect most homebuyers, especially those in the country’s red-hot markets where “fewer buyers tend to rely on insured, so-called high-ratio mortgages”.
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Canada’s new down payment rules not likely to affect most homebuyers.