You may have heard that down payment rules for mortgages are changing slightly.  I think this is a positive thing.

As explained in a couple of articles in the Dec 11, 2015 issue of the Globe and Mail, this increase in down payment is on a mortgage of between $500,000 and $1,000,000, and the change is from 5% to 10%, which will affect a small 1% of the market.  The change, which comes into effect on Feb 15, 2016, is ‘going to help create stability for the overall market by targeting pockets of risk,’ according to Finance Minister Bill Morneau.  Although it might make it harder for a certain group of people to buy a home in that price range, it’s better in the long run because it ensures that that group of people can really afford it and that the equity we all count on later in life will still be there.  [Read more…]