New rules on larger down payments would barely impact consumers outside of Vancouver and Toronto, according to one of country’s largest real estate companies.

Re/Max said in its own surveys over 66% of Canadians agree that 10% or more is a good level for down payment on a home.

Sources indicate the Department of Finance is close to making new recommendations to the Liberal government for further restrictions on the housing market. In addition to making the banks accept a deductible on any insured loss on a home, the department is said to be considering a graduated down payment of up to 10% based on the value of a home.

“If implemented, RE/MAX expects the effect on first-time buyers in most of Canada’s housing markets to be minimal. However, in Vancouver and Toronto, where entry-level homes are often above the $500,000 threshold, these restrictions may be discouraging to some potential buyers,” said the real estate company, referring to the fact down payment levels would stay at the current five per cent for homes value at half a million or less.

Re/Max also issued its forecast for 2016 and it expects home prices to increase another 2.5% nationally. The country’s two hottest markets, the Greater Toronto area and Greater Vancouver, are expected to see average prices increases of five per cent and seven per cent respectively.

The real estate company says prices increases in Toronto and Vancouver are now starting to “spillover” into neighboring municipalities, beyond their normal urban areas. It reported on a year-over-year basis prices were up 13 per cent in Victoria, 10% in Fraser Valley, 12% in Hamilton–Burlington and 8% in Barrie.

Out west, where fears abound of a price collapse amid slow sales, Re/Max concedes there will be an impact in 2016.

“In Alberta, a year after the sudden drop in oil prices, the housing markets have shown resilience,” said Elton Ash, regional executive vice President of Re/Max of Western Canada, in a release. “With oil price volatility continuing to make buyers feel uncertain, we do expect the average sale price to decrease next year, by 3.5% in Edmonton and 4% in Calgary.”

Hiking Mortgage Down Payments Makes Sense for Most Homeowners by Garry Marr | Financial Post