- Most municipalities in Ontario have affordable housing programs. These programs tend to focus on rental housing in low income or developing neighbourhoods. Very few municipalities have programs that encourage residents to become home owners. One municipality, however, is a shining example of how local governments can work to help their constituents achieve their dreams of home ownership.
The Region of Peel’s (representing the municipalities of Brampton, Caledon and Mississauga) “Home in Peel Affordable Ownership Program” (HOP) uses municipal funds to help local citizens achieve their home ownership dreams. HOP provides low-to-moderate income residents who are currently renting with the opportunity to qualify for down payment loan assistance of up to $15,000.
Applicants must be 18 years of age or older, have not owned residential property in Canada or elsewhere, be renters, have a total gross (pre-tax) household income that does not exceed $80,000, be preapproved for a mortgage from a Canada Mortgage and Housing Corporation certified lender, be able to pay all additional closing costs and supply all necessary documentation to the Region of Peel.
Peel does not offer loans to buyers of new homes due to the complexity involved around closing dates. Instead participants may purchase resale detached homes, semi-detached, row homes, town (condominium or freehold) stacked homes or high-rise condominium units that have a maximum sale price of $280,000.
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. On the 20th anniversary date of the agreement, the loan is automatically forgiven provided there has been no default.
Interested applicants must complete the application form, provide all supporting documentation and return it to the Region of Peel.
For 2012, Peel has set aside 50 loan allocations. To date, they have helped 262 families (program started in 2008) to buy a home.