REGINA – Prospective buyers looking to purchase homes over $500,000 will now have to fork out a larger down payment to qualify for mortgage insurance by Canadian Mortgage and Housing Corporation.
Homes $500,000 dollars will still only require five per cent down but new rules effective today mean homes over $500,000 will require that same five per cent down, plus an addition 10 per cent of the difference of the selling price.
For example, a home listed for $600,000 will require a down payment of five per cent of the $500,000 which is $25,000, plus an additional 10 per cent of the $100,000 which is $10,000, for a grand total of $35,000.
It’s a move to cool down hot real estate markets like Vancouver and Toronto.
In Regina, according to MLS.ca, 14.5 per cent of homes in Regina are listed at over $500,000. Mortgage brokers say it’s unlikely the new rules will have a major impact.
“I don’t foresee too many issues with this, that are going to creep up and bite too many people,” Focus Mortgage Solutions’ Jason Dorstauder explained.
“However there are some people doing new construction homes where $500,000 is a nice average. It’ll affect a small number of people.”
With average prices in Regina hovering around $300,000, Dorstauder believes Saskatchewan is in a stable environment.
“I’m inclined to believe that we’re going to see a very flat market over the next while. I don’t expect to see a lot of skyrocketing prices”, Dorstauder said.
On MLS.ca, there are currently 13 homes listed for over a $1 million dollars in the Queen City.
© 2016 Shaw Media