The real estate market in places like Toronto and Vancouver continue to sizzle as housing prices go up every month, sometimes by double-digit percentages.
Former federal finance minister Joe Oliver considered raising the required minimum down payment on a home worth more than $500,000 from 5% to at least 10%.
At 20% or more, you don’t need to acquire mortgage insurance in order to be approved by a bank.
Some experts argue that the market should be left alone, pointing to the fact that homes are in short supply in both the aforementioned markets, and that has more of an impact on the demand for homes than low interest rates and “affordable” 5% down payment requirements do.
What do you think? Does a 5% minimum make it too easy for people to get into the housing game when they really can’t afford to do so if something happens to their employment, the markets or the economy?
Read more about this issue HERE in the Toronto Star.