17 December 2015
Ken Ramsay

Minimum Downpayment Doubles

Photo Source: Mortgagefit

Starting February 2016, houses for sale in Toronto will be subject to new lending requirements.  Down payments for houses between $500,000 - $1,000,000! Must have a minimum of 10% down, rather than the current minimum of 5%. This new rule does not apply to amounts under $500,000!

Here’s an example:  House price: $700,000; Minimum down-payment: $45,000

On the first $500,000 you can have 5% down = $25,000

On the remaining $200,000 you must have 10% down = $20,000

The new rule is aimed at helping prevent buyers from over extending themselves and should not have a huge effect on Toronto home prices!