The federal government is boosting the minimum down payment for higher-priced homes in Canada effective February 15, 2016. Homebuyers are currently required to put down a minimum of five per cent to qualify for CMHC insurance. Starting in February, CMHC will require a 10 per cent down payment on the portion of any mortgage it insures over $500,000. The five per cent rule remains the same for the portion up to $500,000.
Example of effect on down payment:
| Feb 15, 2016 | ||
| NEW Minimum* | ||
| Home Price | Down Payment | DP% |
| $ 450,000 | $ 22,500 | 5.0% |
| $ 500,000 | $ 25,000 | 5.0% |
| $ 550,000 | $ 30,000 | 5.5% |
| $ 600,000 | $ 35,000 | 5.8% |
| $ 650,000 | $ 40,000 | 6.2% |
| $ 700,000 | $ 45,000 | 6.4% |
| $ 750,000 | $ 50,000 | 6.7% |
| $ 800,000 | $ 55,000 | 6.9% |
| $ 850,000 | $ 60,000 | 7.1% |
| $ 900,000 | $ 65,000 | 7.2% |
| $ 950,000 | $ 70,000 | 7.4% |
| $ 1,000,000 | $ 200,000 | 20.0% |
| *5% on first $500K, and 10% down on balance | ||
Mortgage Interest Rates - Dec 12, 2015
Rates are mostly stable with a slight upward bias. Current short term rate specials are 2.69% fixed for 5 years, representing a monthly payment factor of $460/mo per $100K borrowed (25 year AM)
