New Minimum Down Payment For February 2016

December 11th, 2015

Starting in February 2016, the rule for the minimum down payment will change. Currently, borrowers only need to put 5% down to purchase a property (the rest can be financed through a mortgage). In February, borrowers need to put 5% for the first $500,000 and 10% on any amounts over the first $500,000.

For example:

Purchase price = $800,000
Current minimum down payment = $40,000 ($800,000 x 5%)
New minimum down payment = $55,000 (($500,000 x 5%)+($300,000 x 10%))

The goal is to slow down the growth of expensive housing (houses in cities such as Toronto, Vancouver, Calgary…) while still making it affordable for first-time home buyers to get into starter homes with only 5% down (ie condos).

November 2015 Real Estate Numbers Up In Toronto

December 10th, 2015

No surprise here…the number of real estate sales and the average sales price have increased in November 2015 (versus November 2014). However, the highlight is that year-to-date sales in 2015 has already outdone all of 2014, even though we still have one month to go! This shows that the GTA real estate market is still very, very active.