HERE ARE 7 MUNICIPALITIES THAT OFFER FORGIVABLE DOWN PAYMENT LOANS IN ONTARIO

Many municipalities all over Ontario offer funding to help people become property owners (otherwise known as "tax-paying citizens"). Taxes help cities and towns fund civic services and build infrastructure, and therefore, new buyers are not only sought after but necessary for economic growth and prosperity. 

Purchasers can use these incentives alone or together with the Federal Government's Shared Equity Program to help get their foot in the door of the real estate market.

Here is a list of programs currently funded by the federal and provincial governments through the Investment in Affordable Housing (IAH) Program. To apply, you must receive a Mortgage Pre-Approval. Please contact a mortgage broker, trust company, credit union, bank, or another qualified lender of your choice to apply for a no-cost mortgage pre-approval.

You can also start the process by APPLYING here. We specialize in providing the proper form of pre-approval documentation geared for these programs. Programs are available all year.

1. Region of Waterloo Affordable Home Ownership

If your household is selected to receive down payment assistance, you will enter into a Loan Agreement with the Region of Waterloo. The Agreement outlines the terms of the loan. The loan you will receive is 5% of the purchase price of a home.

To qualify, you must:

• Be buying a home in Waterloo Region for $425,000 or less
• Have a household income of up to $96,000 
• Be at least 18 years old and renting
• Have resided in Waterloo Region for at least the last year (as of August 2019)

2. B-Home - Brantford Home Ownership Made Easy

• 5% of the cost of an eligible home (not to exceed $16,710*) under the program to be provided to eligible purchasers at the time of closing of the purchase and sale of the home.
• No interest will be charged on the loan.
• Documentation is required to secure the down payment loan on the title.

To be eligible for an interest-free down payment loan prospective purchasers must meet the following criteria:

• Must be 18-years or older.
• Must be a first time home buyer.
• Not own or have an interest in other residential properties or owe arrears/damages to another housing program.
• Must be currently renting in Brantford or Brant County, and also looking to purchase a home within Brantford or Brant County.
• Household income before deductions less than $88,400* and assets must not exceed $30,000.
• Eligible to obtain a mortgage & demonstrate sustainability.
• Have supplied all the necessary documentation to the City of Brantford Housing Department to determine eligibility.
• Must pay closing costs (certain criteria apply).

3. Lanark County Home Ownership Program.

This program is funding through the Investment in Affordable Housing Program. It assists low to moderate income households currently renting a home in Lanark County or the Town of Smiths Falls to purchase a home by providing a forgivable down payment loan to a maximum of 5% of the purchase price of the home. The loan is forgivable after twenty years.

Eligibility requirements:

• Minimum age of 18 years
• Maximum household income $91,400
• Access to mortgage financing
• Home purchase price less than $305,372.00
• The home located in Lanark County or the Town of Smiths Falls
• Newly constructed or resale home (construction loans not available)
• Applicants must be renting in the County of Lanark or the Town of Smiths Falls.

4. Home Peel - Affordable Home Ownership Program

This program will assist eligible applicants who have a total gross (pre-tax) household income of $88,900 or less to purchase a resale home in the Region of Peel that does not exceed a purchase price of $330,000.

Approved applicants are eligible for $20,000 of down payment assistance.

Participant Eligibility:

• Applicants must be 18 years of age or older
• Attend a mandatory information session
• 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 $88,900.
• 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.

5. Gateway Muskoka

Down payment assistance loans of up to $20,000.00 are available. The maximum purchase price of a home is $335,000.00. The down payment assistance loans are available through an application process. Gateway down payment assistance loans are limited and therefore may not be available to all eligible applicants. 

Eligibility Requirements:

• Homes must be new or for resale.
• The purchase price of the home shall not exceed $335,000.00 and must be located in Muskoka.
• Persons seeking funds to offset construction costs on land that they currently own are not eligible for funding.
• Units may be detached, semi-detached, condominiums, or townhouses. 

6. Simcoe - Affordable Homeownership Program

The Affordable Homeownership Program aims to assist low-to-moderate income renter households, in Simcoe County, to purchase an affordable home by providing 10% down payment assistance in the form of a forgivable loan.

House Eligibility:

• Must provide proof of mortgage pre-approval
• •Must be a renter household (please note: “Room & Board” and/or living with family does not qualify as “Renter Household” unless you are staying in a separate rental unit within the home that can be rented out upon your departure.)
• Must be a current resident of the County of Simcoe, including Barrie or Orillia
• Cannot currently own a home or have any vested interest in a residence/land
• Must provide proof of gross household income at or below $96,000*
• Personal assets, including any gifting amounts from friends or family, savings, GICs, etc. cannot exceed $20,000. RRSPs of first-time homebuyers now do count towards personal contributions, as they can be accessed for home purchases as per CRA guidelines.
• No outstanding arrears if a former/current tenant of Social Housing in Ontario
• At least 18 years of age, Canadian citizen, landed immigrant, or have Refugee Claimant status.

7. Kingston Home Ownership

The maximum amount of the funding will be ten per cent (10%) of the purchase price of the home to a maximum of $30,000.00. The funding will be in the form of a twenty (20) year interest-free forgivable loan registered on title of the property. 

Eligibility Criteria:

• At least one member of the household must be eighteen (18) years of age.
• The household must currently be renting a self-contained unit that will be re-rented within the City of Kingston or the County of Frontenac.
• The household must not currently own a home or have a vested interest in any real estate. • The household must be purchasing their sole and principal residence.
• The combined total gross income of the adult household members must be at or below $84,800.
• The combined total assets of the adult household members must not be above $10,000; assets include recreational vehicles, luxury vehicles (i.e. assessed value greater than $30,000), non-registered investments and cash held in bank accounts. Registered retirement assets are exempt.
• The household members must be Canadian citizens, landed immigrants or have refugee claimant status and must be able to provide supporting documentation.

For more information, please do not hesitate to contact our office. We can help increase your chances of getting approved for these programs by providing thorough and comprehensive pre-approval documentation.

Apply with me today to get started! And don't forget, if you "Mortgage With Me" between now and December 31, 2020, you will automatically be entered to win $10,000!

Sarah A. Colucci, Sr. Mortgage Agent, FSCO #M14000929, Mortgage Edge Broker #10680/ Direct: (647) 773-4849 www.coluccimortgages.com