Down payment Assistance program starting May 1, 2017 in Nova Scotia
New Program Helps Nova Scotians Purchase Their First Home
HALIFAX, NOVA SCOTIA–(April 26, 2017) – Professional Real Estate Investors Group (PREIG) Canada | http://www.Flipping4Profit.ca |
First-time home buyers struggling to save enough for a down payment could soon get access to an interest-free loan from Housing Nova Scotia to make their dream of home ownership come true. The governments of Canada and Nova Scotia are investing $1.3 million to fund a new one-year Down Payment Assistance pilot program.
Andy Fillmore, Parliamentary Secretary to the Minister of Democratic Institutions and Member of Parliament for Halifax, on behalf of the Honorable Jean-Yves Duclos, Minister of Families, Children and Social Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), along with the Honorable Joanne Bernard, Minister responsible for Housing Nova Scotia, made the announcement today.
Quick facts about Nova Scotia down payment assistance starting May 1st, 2017:
The new Home Ownership Down Payment Assistance Program will help 100-125 modest-income Nova Scotians who are pre-approved for an insured mortgage from an accredited lender, but struggle to save for the required down payment because of their income.
The program will offer interest-free loan of up to five per cent of the purchase price of a new or existing home, to a maximum purchase price of $280,000 in Halifax Regional Municipality (HRM) and $150,000 in the rest of the province.
To be eligible, applicants must have a total household income of $75,000 or less. Based on a sliding scale of household income and house purchase price, the down payment assistance loans can range between up to $7,500 and $14,000 (in HRM). Eligible home buyers will have ten years to repay their interest-free loan. Payments can be waived for the first year to allow new homeowners to adjust to any unforeseen costs.
“This is awesome news for first-time home buyers from Nova Scotia," Navtaj Chandhoke, founder of Professional real estate investors group (PREIG) Canada, said. "This program will stimulate the economy and have ripple effect to associate industries." Saving up for a down payment remains one of the main hurdles for first time home buyers in Nova Scotia.
The purchase price of the home may not exceed $280,000 in the Halifax Regional Municipality (HRM) and $150,000 in the rest of the province.
New home buyers must have good credit and be pre-approved for an insured mortgage by a recognized financial institution.
For an applicant to be eligible for the assistance of Nova Scotia First Time Home Buyer Down Payment Program, the following criteria must be met:
The property is in Nova Scotia, Canada.
The applicant is a first-time home buyer
The applicant is pre-approved for an insured mortgage by a recognized financial institution
The applicant has a satisfactory credit rating
The applicant has reviewed the educational material for first-time home buyers provided by Housing Nova Scotia
The applicant’s total household income is less than $75,000
The applicant has resided in Nova Scotia for at least 12 months
The purchased property must be the applicant’s principal residence; rental properties, seasonal and recreational properties are not eligible.
Nova Scotia First Time Home Buyer Down Payment Program Loans:
The loans are interest-free and are repayable over ten years. Participants may waive their payments in the first year.
The loan must go toward the down payment and cannot be used for financing, closing or other costs.
The down payment assistance loans can range between up to $7,500 and up to $14,000.
Additional Information for Nova Scotia First Time Home Buyer Down Payment Program:
The pilot program starts on May 1, 2017 and loans will be advanced between May 1, 2017 and March 31, 2018.
The program will help between 100 and 125 households based on Federal and Provincial funding of $1.30 million.
The program is based on a first come, first served basis. Unused monies in any area may be redistributed if take up is not on target in any of the four regions.
$250,000 is available through federal-provincial cost-matched funding of the Social Infrastructure Fund to cover interest costs and carrying charges.
The province is also making available $1.05 million in funds that will be loaned to program participants.
Learn more about Forgivable Canadian real estate grants at
www.GovernmentGrantsCanada.ca
