CHBA – Alberta Concerned by New Down Payment Requirements
EDMONTON — The Canadian Association of Home Builders’ – Alberta (CHBA – Alberta) is concerned about the impact on the province’s home buyers of higher mortgage down payment requirements announced today by the federal government.
“Almost 70% of new single family homes sold so far this year were priced above $500,000 and in Calgary that proportion is above 85%. While most buyers of homes costing $500,000 or more already put 10% or more down, we’re concerned when blanket national policies are imposed because of regional housing market issues,” said Jim Rivait, Chief Executive Officer, CHBA – Alberta.
The federal government has acknowledged that the requirement for 10% down payments on loan amounts over $500,000 is aimed at cooling specific housing markets – particularly Toronto and Vancouver.
Data from Canada Mortgage and Housing Corporation shows the percentage of new single family home purchases that sold for more than $500,000 in Alberta’s major cities:
• Calgary – 86.4%
• Edmonton – 62.5%
• Red Deer – 54.8%
• Lethbridge – 18.5%
• Grande Prairie – 22.4%
• Medicine Hat – 19.1%
• Wood Buffalo – 98.1%