federal government officially announced changes to the minimum down payment required on new home purchase.
Friday, December 11th, 2015
Here is what you need to know:
Today, the government announced its intent to raise the minimum down payment requirements on homes valued over $500,000. Properties below $500,000 will not be affected. Requirements will remain at 5 % down payment for homes under 500,000.
Any amount over $500,000 will require a 10 % down payment. For example a $700,000 home will require a $45,000 down payment, 5 % on $500,000 and 10 % down on the remaining $200,000.
The announced changes will take effect on February 15, 2016.
The purchase closing date can be after Feb 16th 2016
The minimum down payment for homes $1 million and over remains unchanged at 20%
The government cites its desire to “contain risks in the housing market” as the
reason for its decision.
