Home »
New down payment rules start Feb. 15
By Riki Unrau
As was promised by the new Liberal government during the election cycle, new down payment rules will come into effect on February 15.
While these changes will predominantly effect larger markets such as Toronto and Vancouver, the ripple will be felt all across Canada.
The skinny of the matter is that the minimum down payment of five per cent will increase to 10% for the amount of the mortgage over $500,000. For example, if you are purchasing a home for $650,000, then you will need a down payment comprised of five per cent for the first $500,000 ($25,000) and then 10% of the remaining amount ($150,000 x 10% = $15,000). Your total minimum down payment would therefore be $40,000 when it would have been $32,500 under the old rules.
If your new home purchase is less than $500,000 then there is no need to worry about having to increase your down payment. These changes only apply to new mortgages over that amount.
So, as you can tell for our East Kootenay market, this change will not affect the majority of home purchases in the region. However, if this news throws a wrench into your future home buying plans then be sure to complete your new mortgage transaction by February 14 in order to save on that down payment.
– Riki Unrau is a Mortgage Broker with Invis Williams and Associates, located at 828C Baker Street, Cranbrook, BC V1C 1A2 – 250-919-6402. For more try: rikiunrau.com
