28 Jan

February 15th Down Payment Rules change for Home Owners


Posted by: Tracey Brock

Changes to down payment requirements coming February 15, 2016

On February 15, 2016, the changes Finance Minister Bill Morneau has made to the minimum down payment for home purchases in Canada will officially come into effect. 

 The focus has been brought to homes in the price range of $500,000 and $999,999.00. 

 This is great news for most first time home buyers and means that for a home priced below $500,000.00 the minimum down payment requirement will remain at 5%!

 Homes priced at more than $1 million, purchased to rent or purchased as investment property will still require a minimum down payment of 20 per cent. No changes here either.

Where the changes occur is once you exceed that $500,000.00 threshold.  On the first $500,000.00 the minimum down payment remains at 5%.  Then the amount will increase from five per cent to 10 per cent for the portion of the house price above $500,000. Here is an example for you:

Purchase Price


Down Payment Requirement on 1st $500,000.00


Down Payment on Remaining $150,000.00




Total Down Payment Requirement


Mortgage Professionals Canada noted that the 10% requirement does represent a graduated approach while the Ministry of Finance commented that they believe this will only impact 1% of home purchasers. Keeping in mind this is 1% across Canada.  In the GTA, I believe this number would be significantly increased.