Finance minister announces down payment rule changes

by Justin da Rosa11 Dec 2015
New down payment rules will go into effective February 15, 2016.

“The Government’s role in housing is to set and maintain a framework that is equitable, stable and sustainable. The actions taken today prudently address emerging vulnerabilities in certain housing markets, while not overburdening other regions,” Finance Minister Bill Morneau said in a release. “They also rebalance government support for the housing sector to promote long-term stability and balanced economic growth.”

The minimum down payment for new insured mortgages will increase from 5% to 10% for the portion of the house price above $500,000, the finance ministry wrote.

Minimum down payment for properties up to $500,000 will remain at 5%.

The changes are meant to reduce taxpayer exposure while supporting long-term stability of the housing market, according to the ministry.

“This measure will increase homeowner equity, which plays a key role in maintaining a stable and secure housing market and economy over the long term,” Morneau said. “It also protects all homeowners, including many middle class Canadians whose greatest investment is in their homes.”


  • by Don Johnson 12/11/2015 11:12:20 AM

    What a crock -- We have a finance minister who can not and will not balance the governments books, who is increasing debt every day, (which effectively is an increasing debt on us the workers and taxpayers) and he has the nerve, nay say I, "the sure audacity" , to say we need to be careful about assuming debt. They sure have no problem collecting HST on land sales, realty fees, legal fees, capital gains taxes on farms, agreeing to double land transfer tax's and have no desire to reign in Provincial debt that is destroying the economic base - yet we the tax payers need to be protected. If he was serious they would get the government debt under control and stop their insane "out of control" spending which is a prime factor in causing inflation for prices, rising interest rates and devaluation of the Dollar (which makes us all poorer in the international sense). He's worried housing prices may be affected by rising interest rates -- I'm worried what happens when a Trillion and half dollars of government/provincial debt runs into a 2% interest rate rise and we the tax payers get stuck with another 30 billion dollars of interest debt we have to pay in new taxes. (and they can't even balance their budgets with current debt rates) What a crock !

  • by John 12/11/2015 11:15:08 AM

    Gee thanks big gumbmit. In the Maritimes, especially in rural the Maritimes where the average house price hovers around $130,000, the HST on new homes makes the 5% down payment requirement laughable. A typical new home purchase in the Maritimes after the HST and the 5% down just ensures that Maritimers will continue with the highest demographic of renters across the country.

    Combine the insurance portion of a CMHC insurance on the loan and the HST amortized over 25 years usually financed over 25 years, and you do not have to be a genius to figure out why most people out east rent. To people who can afford $500,000 this is a tiny slap on the wrist, to most most Maritimers it is the kiss of death when it comes to home ownership even with median house prices in the $150,000 range. Make it sound like you are doing small time first time buyers a favour by not penalizing them for under $500,000. You couldn't find more than a handful of Easterners who can afford to spend $500,000.

  • by DW 12/11/2015 11:16:13 AM

    But it's ok to let lender sell boats, ATVs and 90" TVs at 28% and have people approved for $50,000 credit limits at Canadian Tire and Costco?

    When will the government stop catering to the banks. Make these high interest debts illegal and Canadians will be just fine. Real Estate is a secured loan that provides the need for housing and rates are incredibly low. Why not empower Canadians with home ownership instead of oppressing them with rules and regulations that allow the rich to grow their real estate portfolios, while the poor pay their mortgages in the form of unaffordable rents.

    This absolutely makes no sense at all to me!


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