Effective February 15, 2016 new rules went into place governing the minimum down payment required on the purchase of a house in Canada.
Here are the new guidelines for down payments:
- Purchases under $500,000 won't be effected. The minimum down payment required is still 5%.
- Purchases over $500,000 will have their first $500,000 require 5% down, plus the remainder over $500,000 at 10% rate. The sum of that is the minimum down payment.
- Purchases over $1,000,000 won't be effected by this recent change. These purchases will require 20% down minimum.
Here are some examples of different purchase prices and their respective required down payments.