Canada changing mortgage rules to address household debt and mortgage fraud concerns

Submitted by Jasmina on Sun, 2015-12-13 13:28.

Canada is doubling the minimum down payment for insured mortgages to 10% from 5% for the portion of a home’s value from $500,000 to $1-million. The Canadian government said the new rules, which affect higher-priced properties, are mainly targeted at the most expensive markets, particularly Toronto and Vancouver.

As of Feb. 15, there will be additional down payment requirements for homes that sell for between $500,000 and $1 million. The current 5% minimum down payment for the first $500,000 of the house price will be maintained, while requiring a 10 per cent minimum down payment for the portion of the house price in excess of $500,000. Ottawa had already restricted mortgage insurance to homes valued at less than $1-million, and the new rules leave the minimum down payment for more expensive homes unchanged at 20 per cent.

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