The changes to mortgage downpayments which was meant to cool the housing market appears to have had the opposite effect. National Bank said Monday that the rules have failed to have the desired effect so far.

The new 10 per cent minimum downpayment for homes over $500,000 was predicted to mean a short-term rise in house prices as buyers secured mortgages before the deadline. National Bank’s Marc Pinsonneault believes that higher prices will continue as many of those who arranged mortgages before the change are able to buy until the summer.

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