CMHC Rule Change will only Impact Small Amount of Canadians
In late 2015 Finance Minister, Bill Morneau, announced that starting in February 2016, Canadian Mortgage and Housing Corporation (CMHC) will be changing down payment requirements. The rule change will only impact 1% or less of the Canadian housing market.
The new regulations will increase the minimum down payment from 5% to 10% on the portion of the home price greater than $500,000.
The minimum down payment on the first $500,000 will remain at 5%.
For example: on a $650,000 mortgage the minimum down payment requirement would be $40,000.
This is 5% of the first $500,000, and 10% of the remaining $150,000.
No other segments are effected, including first-time home buyers or anyone purchasing over $1 million whereby a straight 20% minimum down payment is required .