Will New Mortgage Rules Affect You?

Will New Mortgage Rules Affect You?

If you are in the market for a home, you might be seeing the media talking about “new mortgage rules” that will make it harder for buyers to obtain mortgages.  Before you get stressed out and storm into your bankers office, know that this claim can be misleading and will not affect the majority of people.  Below is some information about what the new rule really means for you and your family.


On December 11, 2015, the Minister of Finance announced new rules for homes worth more than $500,000.  (Note: all homes under $500,000 are NOT affected).  The new rule is that the minimum down payments on homes over $500,000 are marginally increasing.  Here is what those changes look like:


Home Value

Old Minimum Down Payment

New Minimum Down Payment


$25,000 $25,000










$900,000 $45,000



As you can see, the differences are quite small, and most likely will not affect you.  The reason the government decided to implement this rule was mainly to try and cool the Toronto and Vancouver markets, which have increased tremendously recently.  If you are in our Saskatoon market, the affect of the new rule will be very small.  Our average home price is much lower than those larger cities, which means the change will affect less homes as a percentage.  If you are a Blair’s Rent to Own client, you will not be affected at all.  Our average Rent to Own home value is $300,000, well below the $500,000 threshold.  If you would like to read more about the rule change, follow the link to the Government of Canada website http://www.fin.gc.ca/n15/15-088-eng.asp.


I hope this clears up any confusion and puts any stress you may have about your new purchase to ease!

Brad Blair
Brad Blair

With his early exposure to the business world, his financial and business education, and desire for accomplishment, Blair’s Real Estate Solutions has been a perfect fit for Brad.