New Down Payment Rules for Mortgages Over $500,000

Rule changes that come into effect starting Feb 15, 2016 and the dates that everything gets effected.

Minimum Down Payment Policy Changes for all CMHC and Genworth Applications
As a reminder, on December 11th, 2015, the Government of Canada announced the minimum down payment requirement will be increased from 5% to 10% on the portion of a purchase price for a property that is above $500,000 but less than $1,000,000.

Please refer to the following to determine the down payment requirements:

Applications received by CMHC from January 2016 to February 14, 2016 – Possession On or before July 1, 2016 – 5% Down
Applications received by CMHC from January 2016 to February 14, 2016 – Possession After July 1, 2016 – 5% down on the first $500,000 and 10% on any remaining amounts over and above $500,000.
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Applications received by CMHC February 15, 2016 or later – 5% down on the first $500,000 and 10% on any remaining amounts over and above $500,000.
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Also, a reminder that lenders can take a couple days to get their applications sent off to the insurers so if you keep Feb 10th as a rough cut off date to have your offers accepted, you should be safe.

Don’t just get a mortgage, Know your Mortgage.

Thanks for reading

Scott Bourke, AMP
DLC Regional Mortgage Group
sbourke@regionalmortgage.ca
Follow me on Twitter – https://twitter.com/reddeermortgage

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