National Bank’s CEO is suggesting raising the required down payment amount to 10% from 5% for all housing purchases. Although the minimum required downpayment for houses over $500,000 is already at 10%, houses under that price allow for homebuyers to use 5% down.
This may not seem like a large difference, but this change would negatively impact many first-time home buyers and families who do not have access to financial help with saving their down payment. This type of change would only continue to price first time homebuyers out of the market, and, it can be argued that it would not even cool the soaring housing market where it needs to be.
#firsttimehomebuyers #HanleyMortgageGroup #Torontomortgages#downpayment