Mortgage Minute – New Rules For Minimum Downpayment On High-Ratio Mortgages

Good morning! Ria Qureshi here with your Mortgage Minute for Monday February 15 2016.

Anyone looking to make a home purchase with a high-ratio mortgage new rules apply to you. So what does that mean?

Any purchases are up to $500,000 have a minimum down payment requirement of 5 percent as of today and purchases over $500,000 are now required to have a minimum payment of 10% down payment on top of your first five percent on the first five hundred thousand. Any portion over $500,000 for every $100,000 over $500,000 you are now required to have a minimum down payment of $10,000 per $100,000 purchase

Let’s look at an example:

Let’s say you found a beautiful home on the Sunshine Coast and it’s a $600,000 price tag – the first $500,000 would require you to have a minimum down payment of $25,000 plus a 10% portion of $100,000 over the threshold of $500,000 now requires 10% down payment for a total of $10,000.

Your total minimum down payment today on a $600,000 purchase would be $35,000 whereas a yesterday that would have been a $30,000 minimum down payment.

If you have any questions don’t hesitate to give me a call at 604-989-2253 or send me an email.

I am real estate agent, Ria Qureshi, live from the Sunshine Coast Royal LePage Sussex beautiful British Columbia.