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April 25th, 2019 
Chaim Talpalar

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4 Things to Know About the New Mortgage Rules

 Homebuyers in Canada, now face larger down payment requirements for properties over $500,000. The changes that were implemented last month are intended to temper some of the Canada’s heated Real Estate Markets. Here are 4 things to know about the new rules

Cough up the Cash

Homebuyers now have to put a down payment of at least 10% on the portion of the price of the home over $500,000. For anyone buying a home for $700,000 – a common list price in Vancouver & Toronto – that means the minimum down payment will rise to $45,000 from $35,000. Any home under $500,000 still requires only a down payment of 5%.

Who’ Affected

Primarily those shopping for a home in Toronto & Vancouver, First time buyers in those cities will feel the pinch since they’ll be required to put down bigger down payments to get into the market. Those selling their homes in order to size up, especially in cities with hot housing markets, likely won’t feel the pain since they’ve built up equity in those properties


The influence the new rules will have over house prices is expected to be small, experts say, given their narrow reach. When he announced the changes in December, Finance Minister Bill Morneau said they are expected to affect 1% or less of the real estate market.

Past Measures

Four rounds of changes were made to tighten eligibility rules for new insurable loans between 2008 & 2012. Among them: the minimum down payment was increased to 5%, the maximum amortization period was reduced to 25 years from 30 years & the maximum insurable house price was limited to below $1 million

Source: Metronews – March 2016


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