Categories
 

Government of Canada Takes Action to Maintain a Healthy, Competitive and Stable Housing Market
December 11, 2015 – Ottawa, Ontario – Department of Finance


Finance Minister Bill Morneau today announced changes to the rules for government-backed mortgage insurance to contain risks in the housing market, reduce taxpayer exposure and support long-term stability. Effective February 15, 2016, the minimum down payment for new insured mortgages will increase from 5 per cent to 10 per cent for the portion of the house price above $500,000. The 5 per cent minimum down payment for properties up to $500,000 remains unchanged.

 

For example: 

Purchase price of $700,000

5% down payment on first $500,000 = $25,000

10% down payment on excess $200,000 = $20,000

 

Total minimum down payment required = $45,000

LTV of 93.57%

 

Canadians who already own a home will NOT be affected.

 

The Government continuously monitors the housing market and is committed to implementing policy measures that maintain a healthy, competitive and stable housing market. Higher homeowner equity plays a key role in maintaining a stable and secure housing market.

In making this announcement, Minister Morneau also highlighted the increases in guarantee fees for Canada Mortgage and Housing Corporation (CMHC)-sponsored securitization programs, announced today by CMHC. The Office of the Superintendent of Financial Institutions has also announced today its plans to update regulatory capital requirements for residential mortgages to ensure that capital requirements keep pace with market developments and risks. Taken together, today’s actions will strengthen the resiliency of Canada’s housing finance system to promote long-term stability and balanced economic growth.

Post CommentComments: 0Read Full Story
Categories: 1/2 duplex | 1155 Homer | 1829 W. 13th | 2015 | 2016 Real Estate | 3 bedroom | 550 Beatty | 999 Seymour | Agency | Airbnb | Alexander | Anmore, Port Moody Real Estate | Assessment | August 2014 | bachelor | Bolivar Heights, North Surrey Real Estate | Bosa | Brentwood Park, Burnaby North Real Estate | Burke Mountain, Coquitlam Real Estate | Burnaby | Buyer agent | Cambie, Vancouver West Real Estate | Central Lonsdale, North Vancouver Real Estate | Champlain Heights, Vancouver East Real Estate | cmhc | Collingwood VE, Vancouver East Real Estate | December Stats | Downtown NW, New Westminster Real Estate | Downtown SQ, Squamish Real Estate | Downtown VE, Vancouver East Real Estate | Downtown VW, Vancouver East Real Estate | Downtown VW, Vancouver West Real Estate | East Newton, Surrey Real Estate | east vancouver | Fairview VW, Vancouver West Real Estate | False Creek | False Creek, Vancouver West Real Estate | First Time Buyers | Flip | Fraser VE, Vancouver East Real Estate | Fraserview VE, Vancouver East Real Estate | Gastown | Grandview VE, Vancouver East Real Estate | Guildford, North Surrey Real Estate | Hamilton, North Vancouver Real Estate | Hastings, Vancouver East Real Estate | Highgate, Burnaby South Real Estate | Home of the Week | Home Value | Housing Newsletter | invest | Investment | Investor | Jervis | July New Construction Stats | Kitsilano, Vancouver West Real Estate | Knight, Vancouver East Real Estate | Koret | Langford, Victoria Real Estate | Langley City, Langley Real Estate | legal suite | Loft | Lower Lonsdale, North Vancouver Real Estate | Luxury | Main, Vancouver East Real Estate | Market Update | May Stats | metropolis | Modern | Mortgage | mortgage helper | Mount Pleasant VE, Vancouver East Real Estate | Mount Pleasant VW, Vancouver West Real Estate | Non conforming strata | North Vancouver Real Estate | November | November 2014 Market Update | October Stats | Olympic Village | Open House | Point Grey, Vancouver West Real Estate | Port Coquitlam Real Estate | Port Moody Centre, Port Moody Real Estate | price | Property Tax | Proximity | Quilchena, Vancouver West Real Estate | Renfrew Heights, Vancouver East Real Estate | Renfrew VE, Vancouver East Real Estate | rental | Sapperton, New Westminster Real Estate | Scottsdale, N. Delta Real Estate | September Stats | Short term rentals | Simon Fraser Univer., Burnaby North Real Estate | SOLO DISTRICT | South Granville, Vancouver West Real Estate | Stats | studio | Sullivan Station, Surrey Real Estate | The Heights NW, New Westminster Real Estate | The Spot | Townhouse | Townline | University VW, Vancouver West Real Estate | Uptown NW, New Westminster Real Estate | Vancouver | Vancouver Real Estate | Vancouver Zoning | Victoria VE, Vancouver East Real Estate | VRBO | West End | West End VW, Vancouver West Real Estate | Westend | Whistler | Willingdon Heights, Burnaby North Real Estate | Willoughby Heights, Langley Real Estate | Wohlsein | Yaletown | Yaletown, Vancouver West Real Estate