Advertisement
Homebuyers will have to put down 10% to qualify for CMHC mortgage insurance
It’s a move designed to cool off the booming real estate market in some of Canada’s biggest cities.
Homebuyers will have to put 10 per cent down on the portion of the price over $500,000.
Anything under $500,000 will still only require a five-per-cent down payment.
How the new 10% minimum down payment works »
“This will impact one per cent or less of the market,” Morneau told a news conference.
Morneau says the new measure is aimed at expensive homes while still encouraging first-time homebuyers to get into the market.
The stiffer down payment requirement is one of three new measures targeting the stability of the housing market.
5 things to know about the new mortgage rules »
Financial institutions will face new capital requirements to keep pace with the growing risk of the real estate markets they bankroll.
And Canada Mortgage and Housing Corp. will change the fees it charges issuers of mortgage-backed securities.
“The government’s role in housing is to set and maintain a framework that is equitable, stable and vulnerable,” Morneau said.
The Finance Department has tightened mortgage rules on several occasions in recent years — along with requiring stricter enforcement and management of loans — in an effort to weed out marginal buyers and excessive speculation in the housing market.
One of the changes saw the federal government reduce the maximum amortization period for government-insured mortgages to 25 years from 30 years.
The Bank of Canada has also expressed concerns that too many Canadians risk becoming over-extended, especially once interest rates begin to rise.
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
The world’s biggest cryptocurrency topped USD$98,000 on Nov. 21. As it inches ever closer to six figures, investors wonder:...
Learn how to get mental health support in Canada, whether or not you have workplace benefits or insurance coverage.
Practical advice on how to build your retirement savings for employees at mid-career, the self-employed, single parents and more.
Canada’s inflation rate rose to 2% last month, up from 1.6% in September, but a December interest-rate cut is...
Why Canadians are still feeling the squeeze of high food costs, and what to do about it.
Canadians with no children or siblings must consider estate planning alternatives. Here’s why trust companies can be a good...
Whether you want the highest interest rate or no service fees, these savings accounts will meet your needs.
Find the best GIC rates in Canada. Plus, everything you need to know about how they work.
Which ETFs should you invest in? Which ones best suit your risk tolerance? What about personal ethics? Check out...
