Saskatoon Real Estate News February 18, 2016

New mortgage rules are now in effect

The Liberal government has recently taken steps to minimize housing risks and has implemented new mortgage rules for homes priced over $500,000. As of February 15, 2016, properties over half a million will be subject to new lending laws.

Buyers are still eligible to have a 5% down payment on the 1st $500,000 but now must put a minimum of 10% down on any remainder. Meaning a house purchase of $750,000 will now require a $50,000 down payment instead of the previous $37,500.

The Finance Minister Bill Morneau has said that this new measure aims to ensure buyers have sufficient equity in their homes.

Tightening mortgage rules and requiring stricter enforcement and management of mortgage loans by the government will help keep speculators and buyers stretching beyond their means in check.

If you have questions about the new mortgage rules or the luxury housing market in Saskatoon, please feel free to contact me today.

Kari Calder

Saskatoon real estate agent

Century 21 Fusion