The provincial government has recently enacted legislation that will benefit anyone buying a home. The previous rule stated that you needed to provide a minimum of 25% of the purchase price to avoid having to pay mortgage insurance.
And now, that threshold has been lowered to 20% in Ontario.
What does it mean?
Well, now someone with $60,000 for a down payment can buy a $300,000 home without having to pay for mortgage insurance, which would have added an extra 2.5% to the purchase price.
Previously, you would have required $75,000 to buy that same house without the mortgage insurance!
You can read more details about it in the The Star. Click here for the full article.
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