The recent changes made to Canada’s mortgage rules is in response to the some of Canada’s heated real estate markets. As a result, Canada’s home buyers will now face larger down payment requirements for homes over $500 000.
The greatest change is that home buyers now have to put at least a down payment of 10 per cent on the portion of the price of a home over $500 000. This means that if buying a $700 000 home would require the down payment to rise to $45 000 from $35 000. However, home under $500 000 will continue to require only a down payment of five per cent.
The majority of people affected will be those buying homes in Toronto and Vancouver, Canada’s hottest markets. This will especially affect the first-time buyers in those cities who will have to make larger down payments. On the bright side, these new rules will have a very minuscule impact on the price of homes.
Have you sold your home, and now can use an advance on your equity before closing day, perhaps you need money for renovations? Tembo Financial can help! Tembo offers this unique service to homeowners in Ontario and the GTA. You could receive your money in as little as 48 hours with no credit check and no appraisal* for expenses that matter to you. Don’t wait, start today!
*Subject to qualification.