Ottawa Tightens Mortgage Qualifying Rules

Finance Minister Morneau announced today a revision to Insured Mortgages.

I have outlined the changes below and added a link to a CBC article and videos.

 

Increased Down Payment for purchases over $500,000 and less than $1,000,000.

Buyers can still put 5% Down on the first $500,000 of the purchase price, however the amount of the purchase price in excess of $500,000 is now subject to a minimum of 10% Down Payment.

 

For Example:

$750,000 Purchase Price

Total Down Payment Minimum is 5% on first $500,000 and then 10% down on next $250,000

Total $50,000 Down (NEW) versus $37,500 (CURRENT)

 

Effective Date of change is February 15, 2016.

 

The above changes will likely make for a busy first six weeks of 2016, as Vancouver real estate buyers wth pre-approved mortgages buy before the deadline of Feb 15th

 

Dec 11/15

 

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