Now Canadians that are looking to buy homes between $500,000 and $1 million will have to put down larger down payments as new rules took effect last Monday Feb 15th 2016.
Canadians can buy with 5% down on the first $500,000 of a home purchase and 10% after that. Homes that cost more than $1 million will require a 20 per cent down payment.
When the new rules were announced in December, Finance Minister Bill Morneau said he estimated they would affect about one per cent of the overall real estate market. Some industry experts predicted a surge in sales activity as homebuyers would look to anticipate bigger down payment requirements.
Real estate markets in Ontario, B.C. and Quebec have been active in the first five weeks of the year — but he says it’s unlikely that the new mortgage rules are responsible.
“It’s just not a big enough change to have materially impacted home sales volumes in the country.”
Alberta market is slow due to the uncertainty of the oil industry. This is the market, now, for real estate investors as reduce prices are happening daily.
Home owners are refinancing their homes for two reasons: One to use the equity that they built up to consolidate debts and reduce their monthly expense until the storm passes. Others are accessing to as much cash they can access to buy an investment property.
Whichever your goal might be, I can help you to achieve it.
Call me:
Carolina Paredes
Investor friendly – Mortgage Broker
Mortgage Alliance
403 990 4817