As if attempting to purchase a house in our cities wasn’t stressful enough when it comes to the whole ‘paying for it part…’
Starting today, Canadian homebuyers now face larger down payment requirements for properties over $500,000. You’ll now have to cough up a down payment of at least 10 per cent of the price of a home (it used to be 5 per cent). So, a down payment on a home for $700,000, for example, will increase from $35,000 to $70,000.
If you live in Toronto or Vancouver, where sky-high housing prices make homeownership a pipedream for some millennials, it’s tough to find a house for less than $700,000. So you’re going to need even more in your savings account to make home ownership a reality.
Any property under $500,000 (if you can find one) still requires a down payment of five per cent. Properties over $1 million will still require a 20 per cent down payment.
The changes are intended to slow the pace of some of Canada’s heated real estate markets (i.e. Toronto and Vancouver), according to Canadian Press.
One thing’s for sure, it’s definitely slowing us down.