The federal government is boosting the minimum down payment for higher-priced homes in Canada effective in the new year.

Homebuyers are currently required to put down a minimum of five per cent to qualify for Canada Mortgage and Housing Corporation insurance — protection that lenders insist on when providing a mortgage worth more than 80 per cent of the home’s value.

Starting in February, CMHC will require a 10 per cent down payment on the portion of any mortgage it insures over $500,000. The five per cent rule remains the same for the portion up to $500,000. + Read More

Summary:
Properties under $500,000 – no change, require 5% down payment and mortgage insurance
Properties $500,000-999,000 – now require 10% down payment instead of 5%, and mortgage insurance
Properties over $1,000,000 – no change, require 20% down payment and no mortgage insurance
Properties over $1,250,00 – no change, require 50-60% down payment depending on the lender

* It is predicted that these changes will affect 4% of home sales
* New regulations kick in February 15, 2016
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