Definition
To be eligible for mortgage loan insurance (CMHC, Sagen, or Canada Guaranty), a property must meet a purchase price ceiling set by federal regulation.
**Historical ceilings**: - Before 2012: $1M - 2012-2024: $999,999 (<$1M, essentially unchanged) - December 2024: raised to $1.5M (2024 Federal Budget)
**Implications of raising to $1.5M**: - Buyers of a property between $1M and $1.5M can now access insurance with a minimum down payment - Between $1M and $1.49M: minimum 10% down payment (first $500K → 5%, remainder → 10%) - Exactly $1.5M: 10% of $1.5M = $150,000 - Above $1.5M: still uninsurable → minimum 20% down payment
**Quebec market**: Raising to $1.5M has limited impact in Quebec where median prices remain well below $1M in most markets (except Mont-Tremblant, some Montreal sectors). More significant impact in British Columbia and Ontario.