Most municipalities in Ontario have affordable housing programs; usually these programs tend to focus on rental housing in low income or developing neighbourhoods. For the most part, there are very few municipalities that help residents realize their dreams of home ownership. One municipality, however, serves as an exemplary case of how local government can work to help their constituents achieve their home ownership goals.
The Region of Peel’s (representing the municipalities of Brampton, Caledon and Mississauga) “Home in Peel Affordable Ownership Program” uses municipal funds to help local citizens achieve their home ownership dreams. The program 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 pre-approved 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 $295,000.
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.