Five things to know about Canada’s new mortgage rules
New federal rules took effect this past February 15, when buying a home between $500,000 and $1 million.
Main points to consider: down payment, those affected, the impact, sales activity, and past eligibility rules.
Currently you will need to put down 10% of the price of your home, if over purchasing $500,000. All of those affected mostly impacted will be those who are buying for the first time, as they will not have built up any equity on a previous property. It is predicted that this change will affect 1% or less of those buying. Not sure if the coming of this change provided with a larger amount of sales leading up to the change, or the milder winter we are experiencing, and lower interest rates. Beside these issues, in the past, amortization period was reduced already from 30 to 25 years.