QUOTE (bizaro86 @ Feb 16 2010, 11:23 AM) Looks like I was off-base, or the quote was a bit misleading.
I found the backgrounder on the CMHC`s website: http://www.fin.gc.ca/n10/data/10-011_1-eng.asp
Discouraging Speculation by Requiring a Minimum Down Payment of 20 per cent for non-owner-occupied properties
This measure will require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation. Currently, borrowers may purchase a residential property with a 5 per cent down payment. Today`s change will require a 20 per cent down payment for small (i.e., 1- to 4-unit) non-owner-occupied residential rental properties. Borrowers purchasing owner-occupied residential properties which also include some rental units (e.g., borrowers purchasing a duplex to live in one unit and rent out the other) will still be able to access government-backed mortgage insurance with a 5 per cent down payment.
So 5% down will only be available on property with at least one owner occupied suite.
Michael
So, it`s a big hit for those who purchase SFDs and duplexes I guess, which allowed for the 5% down or 10% down for 3 and 4 plexes. Definitely not good for investors.
The government had to make the apprearance that they were doing something about the perceived "bubble". Unfortunately, I think they are targeting the wrong group. a 10% down payment across the board, would have alliviated alot of fears and still not impacted investors the way this policy does. To lump investors with speculators is absolutely wrong.
No impact for me, since I have been puting 20% down to avoid CMHC anyways....