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Mortgage-Matters

New downpayment rules

Effective February 15, 2016, the minimum down payment requirements will be increased from 5% to 10% for any portion of the purchase price that is above $500,000, but less than $1,000,000. 

Buyers looking to purchase a home for more than $1,000,000 still remain ineligible for high ratio mortgage insurance (and still require a 20% down payment), while buyers looking to purchase a home for less than $500,000 remain eligible for high ratio insurance with a minimum of 5% down payment. 

The following chart, provided by the Minister of Finance provides examples of what this will now look like for those looking to purchase a home.

There will be a transitional period as these new rules come into effect as follows:

For mortgage applications received between December 11, 2015 and February 14, 2016 for purchases completing on or after July 1, 2016, the new guidelines will be in effect (see chart above).

• For mortgage applications received on or after February 15, 2016, the new guidelines will be in effect (see chart above).

For mortgage applications received between December 11, 2015 and February 14, 2016 for purchases completing prior to July 1, 2016, the existing guidelines will be remain in effect meaning purchases between $500,000 and up to $1 Million will only require a minimum 5% down payment.

If you would like a more detailed Q&A from CMHC, please click here.

Or you can email [email protected] or call me at 250.826.3543, and I’ll be happy to answer your questions.



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About the Author

April Dunn is the owner and a Mortgage Broker with The Red Door Mortgage Group – Mortgage Architects. She has been assisting clients to purchase, refinance or renew their mortgages for over 20 years.

April has experience as a Credit Union manager, a Residential Mortgage Manager with a large financial institution and as a licensed Mortgage Broker. By specializing in Strategic Mortgage Planning she has the tools available to build a customized mortgage plan, with the features and options that meet your needs.

April provides a full range of residential and commercial mortgage financing options for clients all over the province of British Columbia and across Canada through the Mortgage Architects network.

Contact e-mail address: [email protected] or by phone at: 888-561-2679.

Website:  www.reddoormortgage.com



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The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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