💥 BIG UPDATE 💥
The Federal Government just announced a major change in down payments for homes worth $1.5M, allowing just 8% down instead of the usual 20%! 🤯 Let’s break it down:
🔵 Current Rules:
• 5% down on the first $500K
• 10% down on the next $500K (up to $1M)
• Homes over $1M require 20% down
🔵 NEW Change:
The government is now allowing 8% down on homes up to $1.5M! That means instead of $300K down, you’ll only need $125K. That’s $175K saved! 💸
But here’s the catch… 👇
🔵 Who’s Taking the Risk?
Your tax dollars! Whether you rent or own, your taxes help guarantee these riskier loans so banks don’t lose. The government is backing them, but what happens if you’re underwater on your home equity? 🤔
🔥 Areas are still 20-30% under peak from Spring 2022, and some people are losing it all because they bought with just 20% down. Imagine being underwater with only 8-9% equity. Scary, right? 😱
📈 And don’t forget – the government is also allowing 30-year amortizations for first-time homebuyers and new builds. More time to pay, but also, more interest for the banks! 🏦
💬 What do you think?
Is this a good policy helping Canadians buy homes faster, or are the taxpayers just funding another can’t-lose deal for the big banks? 🏘️
Let me know your thoughts below! ⬇️