Peterborough Home Ownership Loan program starts Apr 3,2017

[Navtaj Chandhoke]

City of Peterborough

Home ownership Assistance Loan Program 2017

Starts April 3, 2017

The City of Peterborough is offering a

$15,000 loan to assist with a down payment

. The eligibility criteria for this Program include, but are not limited to, the following:

Applicants:

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Are currently renting (as defined by the Residential Tenancies Act,2006);

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Do not presently own a home or property;

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Do not owe money to a social housing landlord;

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Have a gross annual household income up to $78,400;

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Will use the purchased home as the sole and principal residence;

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Qualify for a mortgage from a qualified lender; and

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Are at least 18 years old.

The Home:

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Is purchased for $300,000 or less;

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Is a single detached, semi-detached, townhouse, row, or apartment unit

(freehold or condominium);

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Is inspected by a professional home inspector (resale homes); or

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Is covered under the Ontario New Home Warranty Program (new homes);

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Is located in the City or County of Peterborough; and

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Is of a modest size (approx. 1100 sq. ft for a 3 bedroom home).

Application Process:

Step 1

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Household eligibility approval

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Mortgage pre-approved by qualified lender

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Homeownership Education complete

Step 2

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Requires signed-back Agreement of Purchase and Sale dated at least 5days

later then the date of your Step 1 Eligibility Approval Letter and with a

minimum of 30 days notice of the closing date

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Signed-back Loan Agreement to receive loan upon closing

Other Key Points:

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The loan is forgiven if the home

is the sole and principal residence for 20 years, but is otherwise repayable.

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The loan is registered on title as a second mortgage on closing.

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Canada Mortgage and Housing Corporation (CMHC) mortgage insurance treats the

$15,000 loan as equity.

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Additional funds may be available to

applicants moving out of social housing.

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Household assets, including any gifting amounts from

friends or family, savings, GICs etc. cannot exceed $15,000.

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RRSPs do count towards personal assets

if they can be accessed for home

purchases as per Canada Revenue Agency guidelines.

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The loan amount may be decreased if

$15,000 is greater than 10% of the purchase price.

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Loans will be offered, subject to availability, on a first-come, first-serve basis.

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The Program ends when funding has been allocated or December 1, 2017

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