Earlier this month the Region of Peel again released its grant for HomeBuyers. This is an opportunity for you to get a downpayment on a house from the Region and have it act as a grant not a loan if you stay in the house for 20 years. There are 50-100 grants available and you have to have a prequalification from a bank in order to apply. This year there will be no waiting list for this program. Once the funds have been allocated the program will end. Here are the Details:
Only 50 to 100 people will be giving this opportunity this release.
Max price 280,000
Max income 80,000
Amount received. 15,000
Requirements :
Must have pre approval from CMHC approved lender
Rental letter or tenant agreement from landlord for proof of rental.
2010 NOA notice of assessment
proof of income Letter of employment ,Pay stubs, T4
2 pieces of ID
loan is for 20 years then forgiven.
If sale takes place client pays back loan plus 5% of increase of valve of home.
If home is sold for same price loan is forgiven.
Here are the requirements copied from the Region of Peel Website at http://www.peelregion.ca/housing/home-in-peel/apply/qualifications.htm
What is the Affordable Home Ownership Program?
The Region of Peel’s Home in Peel Affordable Ownership Program is designed to provide low-to-moderate income residents who are currently renting a unit with the opportunity to qualify for down payment loan assistance.
This program will assist eligible applicants who have a total gross (pre-tax) household income of $80,000 or less to purchase a home in the Region of Peel (Brampton, Caledon or Mississauga) that does not exceed a purchase price of $280,000.
Participant Eligibility
- Applicants must be 18 years of age or older
- 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 and looking to buy a sole and principal residence
- The applicant must have a total gross (pre-tax) household income not exceeding $80,000
- The applicant must be able to obtain a mortgage pre-approval from a Canada Mortgage and Housing Corporation (CMHC) approved and insured lender and must submit it with their application
- Participants may not include anticipated rental income from a portion of the property in order to obtain a mortgage
- The applicant must be able to pay all additional closing costs
- The applicant must supply all necessary documentation to the Region of Peel
Eligible Homes
Due to unpredictability of closing dates, new homes will not be eligible for purchase under the Home in Peel 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.
For a home to be eligible, it must be modest in size relative to the community, in terms of floor area and amenities, as determined by the province or the service manager.
The maximum house price for program participants in the Region of Peel is $280,000.
The Down Payment Loan
The down payment assistance will be up to $15,000.
Repaying the Loan
The down payment 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 to be 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 affordability period.
If during the 20 year affordability period, the property is resold, transferred, or otherwise disposed, and an appreciation in value is incurred, the purchaser will be required to pay back to the Region of Peel the loan and 5% of the appreciation.
If the home is sold for less than the original purchase price, the owner does not pay appreciation and the principal is forgiven (the sale must be at fair market value and must be an arm’s length transaction).
Other Costs for the Purchaser
The purchaser is expected to pay the following:
- Closing costs
- Inspection of the home prior to firm offer of purchase and sale
- Lawyer’s fees
- Land Transfer Tax
What is Needed to Qualify for the Home in Peel Program?
Interested applicants must complete the application form (PDF 333 KB, 8 pages) and provide all supporting documentation and return it to the Region of Peel.
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 15 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.
Call me at 905-456-1000 ext 3344 for more details.
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