New mortgage rules will significantly lower down payments on properties costing $1M or more

Under new federal rules effective in December, the down payment for a $1-million home will decrease to $75,000 from $200,000. The changes aim to ease entry into the housing market, especially in urban areas with high prices. Buyers of homes under $1-million can make a down payment of less than 20% but must obtain mortgage insurance. The increased insurable amount is expected to assist buyers in the $1-million range, primarily benefiting high-income Canadians purchasing homes priced at $1.5 million.