“Sponsored Down Payment Program Offered by Peel Region”
I came across a pretty neat down-payment sponsored program offered by the Region of Peel to residents currently renting a residence in Brampton, Caledon & Mississauga.
The Home in Peel Affordable Ownership Program, as it is called, aims to provide residents the chance to qualify for a down-payment loan assistance to purchase a home in Peel region.
To qualify, your total gross (pre-tax) household income must be $87,800 or less and the purchase price cannot exceed $330,000.
I know, I know, I can here the grumbles already: Stevie, where can we actually find a decent home for under $330,000 these days? Okay, be prepared for a broken heart if you’re set on finding a gem in Central Toronto (outside of condo apartments, that is).
In the region of Peel however, especially within the city of Brampton, town-homes & semi detached gems do abound. Let’s look at some of the charms & qualms of this program in further detail.
“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.
“So what’s allowed?”
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.
“How much can I get?“
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 mortgage broker to ensure that the first lender will allow secondary financing.
“What about 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.
“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
“How & where do I sign up?“
Interested applicants must complete the application form and provide all supporting documentation and return it to the Region of Peel within the required timeframe.
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.
