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I have been receiving news of possible changes being implemented under a Liberal plan to help cool off the hot housing market. I think these are not extreme measures and something that should have been implemented a few years ago when they reduced the minimum downpayment for a conventional mortgage to 20% LTV. Below are a couple of recent articles to provide you more information .
From Broker News
by Steve Randall | 03 Dec 2015
Minimum downpayment could rise under Liberal plan
The Liberal government could be about to impose tougher restrictions on homebuyers by raising the minimum downpayment for a government-insured mortgage. Mortgage expert Robert McLister says that there could be a sliding scale of downpayment requirements depending on the price of the home. The Huffington Post reports that it could mean a 10 per cent minimum for those buying a home of $700,000 or more; which would particularly hit those in Toronto and Vancouver where average prices are already above that level. Those buying a home above $501,000 would have to find 7 per cent as a minimum. The Finance Department told HuffPost Canada that it does not comment on unconfirmed policy options but that it regularly reviews policies in consideration of the housing market and wider economy.
