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Federal Finance Minister Bill Morneau announced changes  to the rules for government-backed mortgage insurance. Effective February 15, 2016, the minimum down payment for new insured mortgages will increase from 5 per cent to 10 per cent for the portion of the house price above $500,000The 5 per cent minimum down payment for properties up to $500,000 remains unchanged.


For example, on a $625,000 property (2015 average GTA price)


$500,000 x 5%   =   $25,000


$125,000 x 10% =   $12,500


Total down payment = $37,500


The change will result in an addtional $6250 to the total down payment. The goverment is suggesting that this change will "cool the market" in my opinion this won't effect most prudent Buyers.



    • The announced measure will take effect on February 15, 2016 and apply to new mortgage loan applications received on February 15, 2016 or later. Any mortgage insurance application received between December 11, 2015 and before February 15, 2016 that does not conform to the measures announced today must have a mortgage in place by July 1, 2016.
    • This measure applies only to new insured mortgage loans. Homeowners with an existing insured mortgage or those renewing existing insured mortgages will not be affected by this policy change as mortgage insurance is good for the life of any existing insured mortgage.

More information is available at the Department of Finance website:


News Release:
Frequently Asked Questions:


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