The Bank of Canada reviews the finacial banking system twice a year and this attached article provides some insights into the most recent review.  Veiw more in this Globe and Mail article here...............

December 13, 2015Home

As a Reator I support the lastest action with the new down payment requirements coming into effect in the new year. I was concerned the new government would do some knee jerk reaction and institue  more drastic changes. 

Rob Carrick: Why homeowners should cheer new down payment rules article .....read more

Sounds like future changes coming to the mortgage industry 

Below is a  Globe and Mail article  Friday Dec 11th  indicates in part of  there article  that more changes may be coming as OSFI are planning to update there rules here is a quote from their article.....On Friday, OSFI announced plans to update the rules that dictate how much capital the banks and private mortgage lenders must hold as insurance against bad mortgage loans. Although the proposal is up for discussion, and any changes aren’t likely to be implemented before 2017, there is a decent chance the banks will have to put in place bigger safety cushions to protect against housing-related losses.   Here is the full article from the Globe and Mail. 

MortgageBrokerNews.ca reported  - Finance minister announces down payment rule changes

by Justin da Rosa | 11 Dec 2015

New down payment rules will go into effective February 15, 2016.

“The Government’s role in housing is to set and maintain a framework that is equitable, stable and sustainable. The actions taken today prudently address emerging vulnerabilities in certain housing markets, while not overburdening other regions,” Finance Minister Bill Morneau said in a release. “They also rebalance government support for the housing sector to promote long-term stability and balanced economic growth.”

The minimum down payment for new insured mortgages will increase from 5% to 10% for the portion of the house price above $500,000, the finance ministry wrote.

For example: A $750,000 home will now require $50,000 down -- 5% for the first $500,000 and 10% down for the remaining $250,000.

Properties up to $500,000 will continue to require a minumum of 5% down. Properties in excess of $1 million will still require 20% down.

The changes are meant to reduce taxpayer exposure while supporting long-term stability of the housing market, according to the ministry.

“This measure will increase homeowner equity, which plays a key role in maintaining a stable and secure housing market and economy over the long term,” Morneau said. “It also protects all homeowners, including many middle class Canadians whose greatest investment is in their homes.”

Here is a Globe and Mail  article re changes to mortgages 

Mortgage News article this morning 

by Steve Randall | 11 Dec 2015

The federal finance minister has scheduled an announcement for Friday morning at 9.30 which is widely anticipated to be about the housing market. Reuters reports that the announcement may set out the government’s plans for cooling the housing market, which could include the rumoured hike in minimum downpayment for CMHC-backed mortgages.

more news 

CTV article on proposed increased down payment requirements for home buyers 

The new regulations will increase the minimum down payment required to buy a home for more than $500,000, with portions beyond that amount requiring a 10 per cent down payment. The down payment on the first $500,000 will remain at five per cent.  see more ..................

Below is an article of  regarding a recent C.D. Howe study warning  that 1st-time homebuyers form a larger segment of home owners have mortgages 5 times their earnings leaving them more vunerable if they haven't saved a reserve fund to help them through either future higher interest rates or job loss. 

My experience working with many 1st- time home buyers is they often qualify for alot more that they are willing to spend for their 1st home. They want some disposable income available for other  lifestyle  choices but in today's hot market they are feeling the pressure to spend more to get into the market. Comments and your thoughts appreciated below

1st-time homebuyers at risk because of heavy mortgage debt, says C.D. Howe study

Young and lower-income households face trouble if mortgages rise or they lose a job

CBC News Posted: Dec 09, 2015 12:52 PM ET Last Updated: Dec 09, 2015 3:28 PM ETv

Scotia Mortgage Authority raises rates effective today 

click links below 

This Weeks Homes for sale in Durham Region for 1st time Buyers 

Is Home ownership on your wish list? 

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