You’ve always dreamed of  an expensive all white-and-granite kitchen, a giant walk-in closet to display your hockey jerseys in alphabetical order and a wine cellar big enough to hold a stock of 365 sauvignon blanc bottles.

In order to achieve the above, you need a house!

But starting February 15, 2016 that dream may have gotten a bit harder to achieve.

Finance Minister Bill Morneau announced  in December that there are new minimum down payment requirements that take effect on that date.

For the portion of a home purchase over $500,000  the minimum downpayment will raise to 10% from 5%.

For example, a home costing $700,000 would require a $45,000 down payment – a five%  down payment on the first $500,000, added to a 10%down payment on the remaining $200,000.

No changes if the house is over $1 million — you’ll still need a full 20% downpayment.

If you live in a big city like Toronto, Vancouver or Calgary and are a first-time homebuyer this change is likely to effect you.

You’ll need to save thousands of dollars more to enter the market.
That’s not necessarily a bad thing—- you’re mortgage will be lower, you’ll have more equity in the home and it may stop you from buying a house bigger than you need.

But it’s also likely to  increase the amount you need to save and it may take you longer to jump in the housing market.

If you’re in this boat you’re going to take a nice long hard look at your budget spreadsheet (which, obviously, you have) and see where the savings are going to come from.

  • Can you cut anything else out?
  • Can you get a second job?
  • Can you buy a cheaper house?
  • Can you move to the countryside and buy a rambling ranch for half the price of a bachelor condo in Toronto?


These are all questions that our online course aptly titled CAN YOU AFFORD TO BUY A HOME will help you to answer.  Housing affordability is so much more than what a financial institution will lend you. This course is a First Time Home Buyers Survival Kit. Whether you’re buying in 3 months or 3 years from now, this course will help you understand how much you can afford to you can plan accordingly!


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