Agent Photo

Curtis Leibel 780-438-2500

SERVING YOUR EDMONTON REAL ESTATE NEEDS



Changes in down payment requirements

Effective February 2016, the federal government has made some slight changes to downpayment requirements when purchasing a new home.  The new requirements are:

1) 0-$500,000: buyers will still only require a 5% down payment.

2)$500,000 – $1,000,000 : buyers will now require 10% down payment (previously it was only 5%)

3) $1,000,000 + : buyers still require 20% down.

With ever increasing prices of homes, it is important that the government continue to put these rules in place to ensure first time home buyers dont get themselves in too deep should interest rates go up or house prices decrease substantially.

However, keep in mind if you are purchasing in the 500,000-1,000,000 range, you only need 10% down on the amount over $500,000.  For example: a $600,000 home requires ($500,000*.05=$25,000) + ($100,000*.1= $10,000) = $35,000 down payment.  As opposed to the only ($600,000*.05) = $30,000 that was required before.


Curtis Leibel, REALTY EXECUTIVES - DEVONSHIRE REALTY
11058 51 AV, Edmonton, Alberta, T6H 0L4
Tel: 780-438-2500 Fax: 780-435-0100
© Copyright 2011, Real Estate Websites by Redman Technologies Inc. | Privacy Policy | Sitemap
The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the REALTORS® Association of Edmonton
MLS® MLS REALTOR® Realtor
Trademarks used under license from CREA