Darren Day

What a difference a Day makes

New 5 Percent Down Rule changes and deadlines


Changes to High Ratio Financing effective Feb 15, 2016.


The Department of Finance announced changes to high ratio financing requiring increased down payments for purchasers.  The changes are fairly modest in nature,  a lot of print is simply stating 10% down payment is required on any purchase over $500,000.00 which is not quite correct.  Here are the facts!  

  • ·         Applications submitted to CMHC/Genworth prior to Feb 15, 2016 will be eligible for 5.0% down payment up to $1.0MM as long as we have a conditional approval in place by Feb 15, 2016.
  • ·         CLOSING DATE MUST BE NO LATER THAN JULY 1, 2016.
  • ·         PURCHASE CONTRACTS WRITTEN PRIOR TO DECEMBER 11TH, BUT NOT SUBMITTED TO CMHC/GENWORH UNTIL AFTER FEB. 15TH WILL BE HONOURED UNDER THE ‘OLD’ PROGRAM.
  • ·         Up to an including $500,000.00 a down payment of 5.0% is required now and after Feb 15, 2016.
  • ·         On a price exceeding $500,000.00 the down payment is 5.0% of the first $500,000.00 and 10% of the remainder
  • ·         For example on a purchase price of $700,000.00 down payment now is 5.0% which is $35,000.00
  • ·         After Feb 15, 2015, down payment on a price of $700,000.00 is $45,000.00 which is 5.0% of $500,000.00 plus 10% of the remaining $200,000.00 of purchase price.
  • ·         Essentially just an increase of $10,000.00 on a price of $700,000.00.

Any question contact Darren Day 250-708-2000 or darren@dayteam.com

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Darren Day
Office: 250-708-2000
Cell: 250-686-9222