Changes to down payment regulation

Rumours surrounding changes to minimum down payment requirements has now been finalized.  Finance minister Bill Morneau announced today that the changes will be implemented effective February 15th. 

The minimum down payment will remain 5% for any purchase up to $500,000.  For anything over $500,000, it will be 10%, but only on the amount exceeding $500,000. 

For example, if you are purchasing a home for $750,000, you'll need 5% for the first $500,000 and 10% on the remaining $250,000 making the minimum down payment on this purchase $50,000. 

You will still be able to purchase a home up to $1,000,000 with 5% down until February 15th.  Purchases over $1,000,000 still require 20% down.

The reasoning is to increase homeowner equity.  Personally, I think this move will have very little effect... other than making it more difficult for first time homebuyers especially.