The Government of Canada released a press release this morning announcing “changes to the rules for government-backed mortgage insurance to contain risks in the housing market and reduce taxpayer exposire and support long-term stability”. (Department of Finance)
Beginning February 15, 2016 the minimum down payment for new insured mortgages will be 10% on the portion of the price of a home exceeding $500,000. Previously, the downpayment on this portion of the cost of a home was 5%.
This update will only affect mortgages obtained February 15, 2016 and onward. It is an effort by the Government of Canada to require a more proporionate down payment compared to the cost of a home.
For example: a $750,000 home would require:
5% down payment on $500,000 $25,000
10% down payment on $250,000 $25,000
Total Down Payment on Purchase Price: $50,000
Learn more about the upcoming changes on the Department of Canada website.