Effective February 15, 2016, the minimum down payment requirement will increase for (some) home buyers.
If you purchase a home for $500,000 or greater — and the home is mortgage insured — you will be required to put down a payment of 10% on anything over the first $500,000. Anything under that price is still the normal 5% down payment.
Will this affect us in Saskatoon and Area? Not so much. CBC News reports that the average price of a home in Saskatoon is currently $354,000.
So, if you’re a first time home buyer, what should you do? Exactly what you’re doing right now: keep looking and find the perfect home that fits your lifestyle. Most people who are looking for a home worth $500,000 or more in Saskatoon aren’t first time home buyers. They often have a bigger down payment because they’ve had time to save more money or they’re selling a previous home.
I’ve been a part of the mortgage industry for 15 years and I’ve watched a lot of the rules change. With regard to home purchases, we’ve gone from needing 10% down on any home purchase with 25 year amortizations, to needing no down payment and 40 amortizations. Now we are swinging back again.
My advice is this — and I can’t state it loud enough or long enough — don’t panic. Just breathe. When you are looking to purchase, sit down with your Mortgage Broker and review your financial options. Their job is to help you make informed decisions about your future as a home owner.
Blogged by Elise Hildebrandt, AMP, Mortgage Associate, Broker Lic# 316103 at The Mortgage Centre, Brokerage Lic #315847, Saskatoon. Elise has been given the “Thumbs Up” by Trusted Saskatoon. Please contact her today if you have any questions about your mortgage.