Lower Mortgage Down Payments

Sorry I am a little late on this one. The federal government passed a bill to lower the mortgage downpayment requirement to 20%.
"The new legislation within Bill C-37 affects all mortgages or loans on residential property and requires that borrowers carry mortgage default insurance when the loan-to-value exceeds 80 per cent. The previous 75 per cent maximum loan-to-value had been in place for 40 years."Source RBC

This will really help people in overpriced markets. Take Vancouver where housing affordability for a two story home is at 73.5% of local median household income that 5% will make a difference in the outrageous amount new home buyers must save to get into the housing market. No wonder the cottage industry over there is grow- ops in the basement. How else could anyone afford a house?

Sherwood Park Average Price $400,000

Edmonton residential prices have increased 16.5% since January. Unbelievable. As usual no signs of slowing down. The city is still affordable, prices are still rising and it is still no.1

“Edmonton is still affordable compared to Vancouver, which has an average of $590,000,” said Pratt. “(Edmonton is) certainly not in that range yet.”
She said she expects the increases to continue, especially through the busiest months of real estate, which are April, May, June and July. The market will then likely stabilize for the remainder of the year, she said. Carolyn Pratt, president of the Edmonton Real Estate Board (EREB.)read full article