Have you heard about the new 10% minimum down payment rule?
The Ministry of Finance has announced a new update to the down payment rules. Starting February 15th, 2016, the minimum down payment for homes over $500,000 has been increased to 10%. If you’re looking for a home under $500,000 you will not be impacted at all as the minimum down payment will still remain at 5%. But if you’re in the market for a home over $500,000, you will need to have a 10% down payment ready for every dollar that the house costs over $500,000. For example, if you’re purchasing a home valued at $700,000, your minimum down payment required would be 5% on $500,000 ($25K) plus 10% on $200,000 ($20K) for a total of $45,000 down. Check out the chart below, released by the Department of Finance, which illustrates how the new down payment will work. Please contact us at 905-332-9223 for more information on how this new rule might impact your next purchase of a home. Our Buyer Agent team is ready to help!