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:
Are currently renting (as defined by the Residential Tenancies Act,2006);
Do not presently own a home or property;
Do not owe money to a social housing landlord;
Have a gross annual household income up to $78,400;
Will use the purchased home as the sole and principal residence;
Qualify for a mortgage from a qualified lender; and
Are at least 18 years old.
The Home:
Is purchased for $300,000 or less;
Is a single detached, semi-detached, townhouse, row, or apartment unit
(freehold or condominium);
Is inspected by a professional home inspector (resale homes); or
Is covered under the Ontario New Home Warranty Program (new homes);
Is located in the City or County of Peterborough; and
Is of a modest size (approx. 1100 sq. ft for a 3 bedroom home).
[b]Application Process:[/b]
Step 1
Household eligibility approval
Mortgage pre-approved by qualified lender
Homeownership Education complete
Step 2
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
Signed-back Loan Agreement to receive loan upon closing
Other Key Points:
The loan is forgiven if the home
is the sole and principal residence for 20 years, but is otherwise repayable.
The loan is registered on title as a second mortgage on closing.
Canada Mortgage and Housing Corporation (CMHC) mortgage insurance treats the
$15,000 loan as equity.
Additional funds may be available to
applicants moving out of social housing.
Household assets, including any gifting amounts from
friends or family, savings, GICs etc. cannot exceed $15,000.
RRSPs do count towards personal assets
if they can be accessed for home
purchases as per Canada Revenue Agency guidelines.
The loan amount may be decreased if
$15,000 is greater than 10% of the purchase price.
Loans will be offered, subject to availability, on a first-come, first-serve basis.
The Program ends when funding has been allocated or December 1, 2017
