The federal government announced in December that it intends to raise the minimum down payment requirements on homes valued over $500,000. This will be in effect for homes insured by CMHC.
Requirements will remain at 5 per cent down payment for homes under 500,000. Any amount over $500,000 will require a 10 per cent down payment. For example a $700,000 home will require a $45,000 down payment – 5 per cent on $500,000 and 10 per cent down on the remaining $200,000. The announced changes will take effect on February 15, 2016.
CREA has opposed increasing the minimum down payment since 2011, and will continue to advocate on behalf of home buyers, sellers and members on this issue. Watch your inbox and the REALTOR® Action Network (RAN) for new developments.