Breaking Down the Bank of Canada’s Changes Last Week 

The Maximum Insured Mortgage Increases to $1,500,000. 

-Buyers of properties between $1 million and $1.5 million can now use insured mortgage rules for minimum down payment.  

-Down payment of 5% of the first $500,000 and 10% of any purchase amount above $500,000 up to $1.5 million. 

-Buy a $1.5 million dollar home with $125,000 down. 

-Depending upon property taxes, other debts, etc. a buyer must qualify using the stress test rules, and speculating on applicable rate, but need about a 

$330,000 annual income to be in the discussion. Less for a new home using a 30 year amortization.  Wow 

The Maximum 30 year Amortization for First Time Buyers Changes 

-FTHB’s can as of December 15, use a 30 year amortization on any purchase, new construction or existing property.  

-A smaller payment and a bigger mortgage is the result.   

Maximum 30 year Amortization for New Construction now available to all Insured Buyers 

-As of December 15, all buyers can now get an insured mortgage for a new property with a 30 year amortization. 

-This will lower the payment and increase the maximum mortgage amount.