Exciting news for homebuyers! Here’s what’s changing and how it could impact you:
Max Home Price: You can now buy a home priced up to $1.5M with less than 20% down. This opens the door to more options in higher price ranges.
Down Payment Requirements:
- For homes under $1M: The minimum is still 5% on the first $500K and 10% on the amount above $500K.
- For homes between $1M and $1.5M: A minimum of 10% is required on the total purchase price.
CMHC Insurance Required: All purchases with less than 20% down will require mortgage insurance. This protects lenders and allows you to access this lower down payment option. Insurance premiums are added to your mortgage balance and depend on the size of your down payment.
What Does This Mean for You?
This change gives more buyers flexibility to enter the market or consider homes in higher price ranges. However, keep in mind that with CMHC insurance, there are additional costs, and your overall affordability will still depend on your financial situation and interest rates.
Have questions about how this could work for you? DM us today to explore your options and see how much home you can afford!
