This article was last updated on April 16, 2022
Canada: 
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Finance Minister of Canada’s recently elected Liberal government, Bill Morneau, has finally unveiled the proposed changes to the country’s mortgage system. According to Morneau’s announcement, the government will increase the minimum down-payment for government-backed mortgages from five to 10 percent for homes priced over $500,000 to address “potential future vulnerabilities in our housing sector.” The minister confessed that “obviously, it makes it a little tougher for low-equity buyers to buy in that $500,000 to $1-million price range.”
Conclusively, the minimum down payment was increased by five per cent, the maximum amortization period was reduced to 25 years from 30, and the maximum insurable house price was limited to below $1 million. Earlier in 2014, the average property price for new insured purchases with down payments of less than 20 per cent was about $293,000, compared to an average price of about $416,000 for properties sold through the MLS system. In his remarks, Morneau stated that the new rules are aimed to affect only the expensive homes while still encouraging first-time homebuyers to get into the market. Morneau stressed that “this will impact one per cent or less of the market.”
Whereas on the other hand, the mayor has said he’s also hopeful Ottawa will direct Canada Mortgage and Housing Corp. to collect better data on foreign investment, and deliver on campaign commitments to support co-ops and create new tax incentives for rental housing. It was pointed out that “we are not fearing anything in particular.”
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