The federal government’s new mortgage rules will significantly reduce down payments for home buyers on homes worth more than $1million.
These new rules, which take effect December 15, will require buyers to put down a minimum of 5 per cent on the first $500,000 of the purchase price and 10 per cent on the portion between $500,000 and $1.5 million, the new guidance shows.
So on a home that costs $1,000,000 the minimum down payment will be $75,000 down from $200,000 under these new rules. On a $1,500,000 home, it will the down payment cost will be $125,000.
Again, these new rules take effect December 15. Giving income rich / down payment poor buyers a huge edge in taking the next steps in home ownership.
CLICK HERE to watch Angelo speak about these changes
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