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Government Considers Raising Minimum Down Payment Requirement


Blog by Robert McLean | January 3rd, 2010


CTV says Ottawa is considering raising the minimum down payment for homebuyers as well as reducing the amortization period in order to stop some consumers from taking on too much debt. 

 

In an interview with CTV Question Period, to be aired next week, Finance Minister Jim Flaherty says the measures will be taken if there's evidence of excessive demand in the housing market.

Flaherty says the new measures would target consumers "who are taking on obligations that they will not be able to handle in the future when the interest rates do rise." 

He says the likely measures the government will take are to increase the size of the down payment from 5% "to a higher figure" and to reduce the amortization period "from a maximum of 35 years to something less." 

Click here to read the full Globe and Mail article.

This article is reposted from Mortgage Broker Peter Kinch's monthly newsletter.  Peter Kinch is one of Canada's Top 50 Mortgage Brokers and Co-Author of 97 Tips for Canadian Real Estate Investors