18 Jan

Minimum down payment over $500k

General

Posted by: Kevin Carlson

Good day all;

 

I am sure most of you had heard about the change to the minimum down payment requirement

for the purchase of homes over $500,000.00 announced on December 11th

Just to clarify; this increase to 10% down is only on the purchase amount over $500,000.00.

 

For example:

Purchase price of $600,000.00

Minimum down payment required of 5% on the first $500,000.00 = $25,000.00

Minimum down payment required of 10% on the remaining $100,000.00 = $10,000.00

Total minimum down payment required = $35,000.00

 

This new rule comes into effect on any mortgage applications submitted after Feb. 15/16. 

Mortgage applications submitted prior to this date will be subject to the old rules of a

flat 5% down payment provided that the mortgage funds before July 1/16.

 

I am happy to report that in spite of oil prices and slowing economy, I have not been

working with an increased number of clients in financial trouble.  Even though

residential construction in Regina has slowed, commercial projects like the stadium

and the new International Trade Centre at the exhibition grounds move forward with

high demand for labour. 

 

However, much like a leaky dam, the time to address financial trouble is before

the dam bursts.   If you or someone you know is facing income interruption and

subsequent credit issues, please get in touch with me right away.  Mortgage options

for those with good credit are greatly varied.  Once a few months of missed credit

payments go by, the mortgage financing options get fewer and what is left is higher

interest rates and less access to home equity to help bridge the gap in hard times.

 

Last year, DLC – Bittner Mortgages held a referral contest where each client and the

person who referred them to us received one entry each into a draw for a travel voucher. 

We had a terrific response to this promotion and I would like to again thank all those

who referred others to me for their next mortgage.  In December we drew the name

of the happy winner of the travel voucher who is one of our valued mortgage clients in Estevan. 

We were so happy with the response that we are working on a similar promotion

for 2016 right now, so keep those referrals coming in.

 

“Warm” regards,

Kevin