Guelph519 837 2100 | 1 800 746 0685

Fergus519 843 1960 | 1 800 746 0685

Law Firm LLP

Contact Us:

Please contact our office directly to discuss your legal requirements or for more information on our services. If you wish to contact one of our lawyers directly please visit the Our Team page.

Guelph Office

105 Silvercreek Pkwy. N.
Suite 100 Guelph, ON N1H 6S4

Mailing Address

P.O. Box 1240
Guelph, ON N1H 6N6

Phone: 519 837 2100
Fax: 519 837 1617

Toll Free: 1 800 746 0685

Email: guelphinfo@smithvaleriote.com

Fergus Office

265 Bridge Street
Fergus, ON N1M 1T7

Mailing Address

P.O. Box 128
Fergus, ON N1M 2W7

Phone: 519 843 1960
Fax: 519 843 6888

Toll Free: 1 800 746 0685

Email: fergusinfo@smithvaleriote.com

Quick Contact

select

Sending an email to SmithValeriote LLP does not establish a solicitor-client relationship. Please do not send any confidential information to the firm unless a retainer has been confirmed. I Agree.

Submit     Cancel/Close

Smith Valeriote Lawyers Blog | Smith Valeriote LLP Law Firm Guelph

CMHC Increases Down Payment Requirements

As of February 15, 2016, the Canada Mortgage and Housing Corporation (“CMHC”) has increased the minimum down payment required for higher-priced homes across the country.

A home buyer with at least a 20% down payment is exempt from purchasing mortgage insurance through CMHC. Historically, CMHC required a minimum down payment of 5% to qualify for its insurance program.

Recently, CMHC has increased this minimum down payment to 10% for any portion of a mortgage that is over $500,000.00. Additionally, all properties over $1,000,000.00 require a minimum down payment of 20%. As such, CMHC rules do not apply to purchases over one million dollars.

It is expected that the new rules will have the largest impact in the large urban housing markets such as Toronto and Vancouver. The rules will also impact purchasers of higher end homes in smaller urban centres such as Guelph. The bottom line is that consumers looking to purchase homes over $500,000.00 may be forced to save for a few more years before CMHC is able to insure such mortgages.

Please feel free to contact the author of this article with any questions or comments you may have at: nmartin@smithvaleriote.com

The content of this article is intended to provide a general guide to the subject matter and is not legal advice. Specialist advice should be sought regarding your specific circumstance.

Author:
Nathan Martin

Date:
2016.03.29

Share:

Smith Valeriote Logo - Excellence in our Community

SmithValeriote Law Firm LLP has 30 lawyers servicing the province of Ontario including the communities of Waterloo, Kitchener, Fergus, Cambridge, Elora and Guelph.

Smith Valeriote - Map to Guelph Offices

Guelph Office

105 Silvercreek Pkwy. N.
Suite 100 Guelph, ON N1H 6S4

Phone: 519 837 2100
Fax: 519 837 1617

Toll Free: 1 800 746 0685

Email: guelphinfo@smithvaleriote.com

Smith Valeriote - Map to Fergus Offices

Fergus Office

265 Bridge Street
Fergus, ON N1M 1T7

Phone: 519 843 1960
Fax: 519 843 6888

Toll Free: 1 800 746 0685

Email: fergusinfo@smithvaleriote.com