Minimum Down Payment Rising on $500k And Up Homes

Minimum Down Payment Rising on $500k And Up Homes

Although it won’t affect the majority of the Windsor Essex housing market, the Finance Minister announced today a new minimum down payment of 10% from 5% for the portion of house prices above $500,000. **Effective Feb 15th 2016**

Example: $700,000 purchase price would at minimum need a 5% down payment for the first $500,000 and 10% down payment for the remaining $200,000. Previously the minimum down payment would have been $35,000 (700,000 x 0.05), and would now be $45,000 (500,000 x 0.05  +  200,000 x 0.1) under the new rules.

This change will NOT affect Canadians who currently hold a mortgage.

Read more about it on The Globe and Mail *here*