Down payment loan assistance in the region of Peel

[Navtaj Chandhoke]

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.

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

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.

Speaking Engagements

Navtaj Chandhoke can be your next key note speaker for real estate office meeting or Canadian real estate investment conventions, expos or trade shows.please contact us for topics and availability.

Please contact us directly at Pam@WorldWealthBuilders.com or 647-393-6100 to set up a session at your meeting or convention.

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