This week, the Liberal government made a move to attempt to curb the demand for high priced homes in Canada. How will this affect our market here in the Shuswap?
To break it down, the new downpayment rules only affect those buyers purchasing a home between $500,000 and $1,000,000 who are also taking a high-ratio mortgage.
Since 2008, homebuyers in Canada have been required to have a minimum of 5% downpayment on their home purchase. This doesn’t change for purchasers under the $500,000 cap, which quite frankly, is the majority of homes purchased in the Shuswap area.
The new rules require a minimum of 10% down for the portion of purchase above the half million mark. For example, if you had a home selling for $650,000, the downpayment required…