In December the Finance Minister announced a small change to the down payment requirement for CMHC insured purchases between $500,000 and $1,000,000. Currently the minimum required down payment is 5% of the purchase price for any owner occupied property or second home, but starting February 15th, the minimum down payment will be 5% on the first $500,000 and then 10% of the value above $500,000. The impact? If you’re buying a house for $600,000, you’ll now need $35,000 instead of $30,000 from your own resources; for a purchase of $750,000, the down payment goes up by $12,500 (from $37,500 to $50,000).
For purchasers buying properties under $500,000, there are no changes to worry about, and for purchases above $500,000 that are submitted prior to February 15th, the current rules apply regardless of the closing date. So if you are planning on buying a property above $500,000 and want the current CMHC rules, make sure you get your deal submitted before the February 15th deadline!