Downpayment Help

[MJK]

3 years ago I purchased a property (in Newfoundland) and used it as my primary residence for only a couple months. I moved away and that property is now being rented but I still own it and still have a mortgage.

I am in the process of building a new home (in Nunavut) and will use it as my primary residence. I know there were new regulations handed down not too long ago that said there needed to be a minimum downpayment of 20% for investment properties.

Considering my situation, I assume I can just do the 10% downpayment if I wanted too OR does this 20% downpayment apply to me as well?

Thanks.

[flamesfan55]

If I am correct the 10% is good, not sure if true but I thought new home needed 20% down now?

[8sPOT]

Your property out east should now be considered a rental. So the home you plan on building will be your primary residence and as such, you only need 5% down. Plus approximately 3% for CMHC/Genworth premiums, which will conveniently be tacked onto your mortgage.

[tvp2003]

Check with your mortgage broker, but you may not be only be allowed to go 10% down (i.e. borrow 90%) on your new primary residence (Nunavut) unless you have 20% equity in what is now the rental property (Nfld).

[Bonded]

You live in strange places

[Winsor_Pilates]

Originally Posted by tvp2003

Check with your mortgage broker, but you may not be only be allowed to go 10% down (i.e. borrow 90%) on your new primary residence (Nunavut) unless you have 20% equity in what is now the rental property (Nfld).

Yeah, this makes the most sense.
It will likely depend how much equity is in the current place, otherwise people could just buy all properties at 5% down, and pretend they are the primary residence at the time, then shift it into an investment property.