Jen Bolton
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Changes to the Mortgage Rules

February 15, 2016.- The new minimum down payment requirement

For properties between $500,000 and $1 million, folks getting an insured mortgage will now need to put more down—up to an additional 2.5% of the purchase price. In other words, 5% down will be required on the first $500,000, and 10% down will be required on the next $500,000.

For a $750,000 property, that means you’d have to cough up a 33% bigger down payment (compared to today), or another $12,500. The new rule doesn’t affect properties over $1 million because they don’t qualify for high-ratio mortgage insurance anyway.


June 21, 2012 -- The Honourable Jim Flaherty, Minister of Finance, announced four measures for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent:

  1. Reduce the maximum amortization period to 25 years from 30 years.
  2. Lower the maximum amount Canadians can borrow when refinancing to 80 per cent from 85 per cent of the value of their homes.
  3. Fix the maximum gross debt service ratio at 39 per cent and the maximum total debt service ratio at 44 per cent.
  4. Limit the availability of government-backed insured mortgages to homes with a purchase price of less than $1 million.

The new rules took effect on July 9, 2012.


The government is implementing a few new mortgage rules as of March 18, 2011.  This is aimed at addressing the growing concern about increased household spending and attempting to decrease household debt in Canada.

What are the changes:

1.  The maximum amortization period has been reduced from 35 years to 30 years for government insured mortgages. 

2.  When refinancing the maximum amount Canadians can borrow has been reduced from 90% to 85% of the value of their home.

3.  And lastly, the government insurance on lines of credit secured by homes has been withdrawn. 









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