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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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