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Upcoming mortgage rule changes will impact sales of pricier houses, according to one industry professional who is sounding the alarm in two particular provinces.

Recently announced mortgage rules – which go into effect February 15, 2016 – will require larger down payments for pricier homes.

The minimum down payment for new insured mortgages will increase from 5% to 10% for the portion of the house price above $500,000, the finance ministry wrote in a release last week.

For example: A $750,000 home will now require $50,000 down -- 5% for the first $500,000 and 10% down for the remaining $250,000.

The new rules won’t affect homes below $500,000, which could lead to increased interest in those homes. 

However, the Toronto, Vancouver, and Calgary regions will likely be most affected.
In Calgary, for example, 86% of homes cost more than $500,000.

Meanwhile, Toronto and Vancouver boast some of the priciest average home prices in the country at $1.017 million and $1.175 million, respectively.


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#1 Most Livable City    Toronto

 

 

After four chaotic years under car-loving, crack-smoking former mayor Rob Ford, life in Toronto has returned to normal. Fortunately, the city’s “weak mayor” system gives the chief magistrate, like council’s other 44 members, just one vote. In other words, even the worst administration can only inflict limited damage. The city is no longer tearing itself apart and has returned its focus to realizing its enormous urban potential.

 

Indeed, Toronto is in the midst of a transformation that will make one of the most livable cities on earth even more attractive. Condo and office towers continue to pop up at a fast and furious rate as people—especially seniors and young professionals—flood into a downtown where they can enjoy Canada’s most urban environment. Growth in the inner core now outpaces suburbia for the first time since the 1970s—in 2014 alone, more than 20,000 residential units were completed.

 

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