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Big Affordability Change for Buyers
What is the new amount of mortgage down payment needed to purchase a home starting December 15 2024? Instead of $300,000 it is now possibly just $150,000 if the home price is $1.5m The value of the eligible residential property against which the loan is secured must be less than $1.5 million, and the downpayment required is:
5% on the portion of a purchase price up to $500,000 and
10% on the portion of a purchase price between $500,000 and $1.5 million.
So 5% on the first $500,000 = $25,000
Remainder portion if home is $1.5 = $100,000
Downpayment on a $1.5 m home December 15 2024 = $125,000
* for those who qualify and are eligible. Of course always speak to a mortgage provider for more info – this is just a general exercise to illustrate the new Mortgage rules…which are relaxing downpayment demands on homes up to $1.5m homes.
Increasing the $1 million price cap for insured mortgages to $1.5 million
“This measure would apply to all borrowers requiring high loan to value mortgage insurance in Canada and must satisfy the following requirements:
The total loan to value is greater than 80 per cent;
The value of the eligible residential property against which the loan is secured must be less than $1.5 million; and,
The down payment requirements for the loan are as follows:
5 per cent on the portion of a purchase price up to $500,000.
10 per cent on the portion of a purchase price between $500,000 and $1.5 million.
Other Parameters
Effective date: These measures will be available for mortgage insurance applications that lenders submit to mortgage insurers on or after December 15, 2024.
These measures will only apply to high loan to value mortgages on properties occupied by the borrower or a close relative.
All other eligibility criteria for government-guaranteed mortgage insurance will continue to apply.”
More New Mortgage Criteria and Rules such as the 30 Year Amortization are at the Government
More details on Mortgage Rule changes here at this Government Site Link:
