Canada Guaranty Mortgage Insurance Benefits

Archive for December, 2015

New Minimum Down Payment Parameters Effective February 15, 2016

Minimum Down Payment Parameters Effective February 15, 2016

On December 11, 2015, the Minister of Finance announced a new policy impacting the minimum down payment requirement for government-backed mortgages on properties with a purchase price above $500,000 and less than $1 million. Canada Guaranty believes these guidelines will continue to promote the long-term health and stability of the Canadian housing market and supports the following guidelines.

  • 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 $500,000. The 5 per cent minimum down payment requirement remains unchanged for properties up to and including $500,000.
  • The new down payment parameters will also apply to insurance applications received between December 11, 2015 and before February 15, 2016, with a closing date after July 1, 2016.
  • Pre-December 11, 2015 (“old”) parameters continue to apply to applications received between December 11, 2015 and before February 15, 2016, where the closing date falls on or before July 1, 2016, and to applications received by Canada Guaranty on or after December 11, 2015, where a valid purchase and sale agreement was dated before December 11, 2015, regardless of the closing date.

We continue to implement system changes that will ensure applications with the following characteristics are automatically referred for underwriter review:

  • The purchase price is greater than $500,000
  • The closing date is after July 1, 2016
  • The new minimum down payment requirement is not met

For additional reference, information regarding the implementation of these new guidelines, as issued by the Department of Finance, can be found here: http://www.fin.gc.ca/n15/15-088-eng.asp. We remain dedicated to ensuring our partners experience a seamless transition and encourage you to contact a member of our team with any questions.

Thank You,


Mary Putnam | Vice President, Sales and Marketing
Canada Guaranty Mortgage Insurance Company

Telephone 416.640.8936 
Toll Free 866.414.9109 ext. 8936 
E-mail mary.putnam@canadaguaranty.ca

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