New rules applying to mortgages in Canada


New rules applying to mortgages in Canada took effect as of Monday February 15th. Although intended to having a slowing affect on the real estate market in particularly boisterous trading markets, namely Vancouver and the City of Toronto, they will likely have very little affect. They are worthy of mention for markets such as Oakville where the average sale price of a home rose in January, 2016, to an all time high of $965,165. The new rules require a minimum down payment of 10% of the purchase price for homes in the $500,000 to $1 million price range and 20% down payment for properties in excess of $1 million. The new rules are a follow up on previous other changes to minimum down payment, maximum amortization period, and the maximum insurable house price.

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