CMHC Increases Downpayment Requirements > $500,000

Link: New Changes to the Minimum Downpayment Requirement in Canada

If you are planning on purchasing a property between the value of $500,000 to $1,000,000, then February 15, 2016 would be a date for you to keep in mind 

The new Liebral government of Justice Trudeau has implemented a new tiered downpayment system in hopes to "maintain a healthy, competitive and stable housing market in Canada particularly for the Vancouver and Toronto housing markets. 

The new minimum down payment required now for insured mortgages will increase from 5% to 10% for the portion of the purchase price of the property that is greater than $500,000 but less than $1,000,000 (tiered scale).

Example: A property with a purchase price of $675,000 will now require a total down payment of $42,500.

Here is the calculation breakdown:

 5% of the first $500,000 = $25,000

10% of the remaining $175,000 = $17,500

Total downpayment required = $42,500

To read more about it, click on the link attached above for the full article