We wanted to provide you with some additional information about the recently announced down payment changes that could affect your clients/buyers and their mortgaging needs.
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 $500K but less than $1,000,000.
Any mortgage application submitted for approval prior to February 14, 2016 will be reviewed with 5% down payment provided the possession and funding date is prior to July 1, 2016.
Please refer to the following chart to determine the down payment requirements:
| Date of purchase & sale agreement | Closing date | Down Payment Required |
| Applications relating to purchase and sale agreements dated before December 11, 2015 | Any | 5% down |
| Applications received by CMHC from December 11, 2015 to February 14, 2016 | On or before July 1, 2016 | 5% down |
| After July 1, 2016 | 5% down on the first 500,000 and 10% on any amounts above |
As always, please do not hesitate to contact us with any questions.
