The urbaneer Team is delighted to share with you our latest press in Thomson Reuters Press about the Federal Government's change to the minimum down payments required for CMHC-backed mortgages. In case you missed the headline, as of February 15th, 2016, any home purchase over $500,000 up to $1,000,000 will now require a portion of the down payment to be 10%. Transactions less than $500,000 will continue to only require a 5% down payment and property purchases over $1,000,000 retain the minimum down payment of 20%. This policy is being implemented in an effort to cool the hot Vancouver and Toronto real estate markets.
Reuters contacted urbaneer's Steve Fudge for his thoughts on how the new tiered down payment rules might impact the market. Along with potentially fueling Buyers to secure a property in the $500,000 to $1million market within the next 60 days before the higher down payment requirements take effect, Steve anticipates "Cash-poor buyers will be funneled into less expensive properties which, in Toronto, means the more affordable condominium market."
"This isn't necessarily a bad thing, as it creates a larger pool of buyers to support the exponentially larger supply of condominiums in Toronto. In fact ... it may help mitigate the potential oversupply of condominiums we collectively fear may be happening," said Fudge.
Here's the Reuters article called Tighter Canada Mortgage Rules Could Boost Condos, Hurt Consumers.
And, for a full summary of this new policy, here's our recent post Federal Government Boosts Minimum Down Payment For Home Purchases which also addresses how this may impact Toronto Buyers and Sellers.
Are you actively engaged in the Toronto real estate market? Here's our insightful Winter 2015 Toronto Real Estate Forecast: Part One and our Winter 2015 Toronto Real Estate Forecast: Part Two. In our comprehensive forecast, we summarize what the pundits have been saying about the Toronto housing market as it relates to the dynamics of supply and demand, the escalation in prices relative to affordability, and whether the change in our federal political landscape can effectively buoy the Canadian economy while cooling the scorching hot Vancouver and Toronto real estate markets.
Do you have questions about Toronto real estate? With decades of experience navigating the highs and lows of our market, and our commitment to remain acutely aware of shifts and trends, we're here to help! All without pressure or hassle.
The Urbaneer Team
- earn your trust, then your business -
Like what you've read? Consider signing up in the box below to receive our FREE monthly e-newsletter on housing, culture and design including our love for unique urban homes and other Toronto real estate!
Love Canadian Housing? Check out Steve's Student Mentorship site called Houseporn.ca which focuses on architecture, landscape, design, product and real estate in Canada!