Bigger down payment needed for homes over $500,000.
January 24, 2025 | Posted by: Sherry Corbitt
On December 10th, the Finance Minister announced that any home purchases over $500,000 would need 10% as a down payment instead of just 5%. The extra down payment is only needed for the portion that is OVER $500,000. Here are a few examples:
$525,000 purchase needs a down payment of $27,500 (was $26,250)
$700,000 purchase needs a down payment of $45,000 (was $35,000)
Home UNDER $500,000 can still buy with 5% down, or 5% loaned to you (a loan of 5% is given to you, and as long as your income vs. debt supports it, you can use this 5% loan toward the down payment. This is to replace the zero-down mortgages that are no longer available.).
Homes over $1 Million will still need 20% down.
This new mortgage rule will come into effect on February 15, 2016.
I will take the time to explain all the mortgage rules and find the solution that works best for you. However, the market is constantly changing and adjusting to the Canadian and global economy, and you need someone who can explain it and help navigate the best mortgage options for you.
Cheers!
Sherry Corbitt, Mortgage Broker
sherry.corbitt@migroup.ca / 905-995-3143
Sources
-Da Rosa, Justin (2015). Finance minister announces down payment rule changes. Mortgage BrokerNews. Retrieved from http://www.mortgagebrokernews.ca/news/finance-minister-announces-down-payment-rule-changes-200772.aspx
