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Minimum downpayment could rise under Liberal plan

 

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.


Financial Post Article by Gary Marr December 2, 2015 2:57 PM ET

Mortgage industry insider says Finance is pondering hike to minimum down payment

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