Down payment loan assistance in the region of Peel

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Down payment loan assistance in the region of Peel

Post: # 45709Post Flipping4Profit.ca
Fri Aug 21, 2015 5:37 pm

Down payment loan assistance in the region of Peel


The Home in Peel Affordable Ownership Program is designed to provide low-to-moderate income residents who are currently renting a unit in the Region of Peel (Brampton, Caledon or Mississauga) the opportunity to qualify for down payment loan assistance to buy a home in Peel Region.

This program will assist eligible applicants who have a total gross (pre-tax) household income of $87,800 or less to purchase a resale home in the Region of Peel that does not exceed a purchase price of $330,000.

Participant Eligibility

Applicants must be 18 years of age or older
Applicants must be a Canadian citizen or have permanent resident status
Applicants must not own or have an interest in another residential property in Canada or elsewhere
The home must be the sole and principal residence of the purchaser
The applicant must currently be renting in Peel and looking to buy a sole and principal residence
The applicant must have a total gross (pre-tax) household income not exceeding $87,800
The applicant must be able to obtain a mortgage pre-approval from a bank/lender that is approved and insured by a mortgage default insurer such as Canada Mortgage and Housing Corporation (CMHC) and must submit it with their application
The applicant must be able to pay all additional closing costs
The applicant must supply all necessary documentation to the Region of Peel within the required timeframe
Eligible Homes

Due to unpredictability of closing dates, new homes will not be eligible for purchase under the program.

Participants may purchase:

resale detached homes
semi-detached
row homes
town (condominium or freehold) stacked homes
high-rise condominium units
Duplex, triplex or mobile homes do not qualify as eligible homes under the Home in Peel program.

The maximum house price for program participants in the Region of Peel is $330,000.

The Down Payment Loan

Approved applicants are eligible for $20,000 of down payment assistance.

In the event that the purchase price of the property is less than $200,000, the amount of the loan will be adjusted to equal 10% of the purchase price.

Secondary Financing

The Region's loan will be registered on title to the property as a second mortgage on the closing date of the purchase of the home.

Applicants must contact their bank/first lender to ensure that they will allow secondary financing.

Canada Mortgage and Housing Corporation (CMHC)

CMHC mortgage insurance is required in Canada for mortgages with down payments of less than 20% of the cost of the home.

In support of the Home in Peel program which is federally and provincially funded under the Investment in Affordable Housing Program, CMHC will recognize the down payment received through this program as part of the home owner’s equity.

Repaying the Loan

The loan is for a 20-year period and no interest is charged if:

The home remains the sole and principal residence of the owner. The home is not rented, leased or sold in the 20-year period.
On the 20th anniversary date of the agreement, the loan is automatically forgiven provided there has been no default.
Repayment of the loan is required when:

The home ceases to become the sole and principal residence of the owner.
The home is sold before the 20-year period.
In the event of default prior to the 20th anniversary of the loan, the following repayment scenarios may apply.

The attached chart is for reference only. The wording in your loan agreement is the only source for calculating the repayment of the loan.

Other Costs for the Purchaser

The purchaser should be aware that they are required to pay additional closing costs that includes, but is not limited to the following:

Deposit (minimum $5,000)
Home inspection fee
Lawyer’s fees
Land Transfer Tax
What is Needed to Qualify for the Home in Peel Program?

Interested applicants must complete the application form and provide all supporting documentation and return it to the Region of Peel within the required time frame.

As funding for this program is limited, participants are selected on a first-come, first-serve basis. Once an application is received, a letter confirming eligibility will be sent within 30 business days. There is no wait list for this program; once all funding has been allocated, all remaining applicants will be notified by letter that the program has ended.

DISCLAIMER

We believe the information contained in this article to be accurate. It is presented with the understanding that we are not engaged in rendering legal, accounting, or investment advice. When professional assistance is required, utilize the services of a licensed real estate broker, lawyer, accountant, or other consultant as may be required.

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