Down payment help available for first-time home buyers
The Prince Edward Island government is making it easier for Islanders to purchase their first home.
Under the Down Payment Assistance Program (DPAP), the provincial government will provide interest-free loans – worth up to 5 percent of the purchase price of an eligible property – to qualified applicants. The loans are repayable over 10 years.
“We have had a lot of interest in the down payment assistance program since it was first announced with the housing action plan,” said Finance Minister Heath MacDonald. “Similar programs in other jurisdictions have been very popular and have assisted many families, and now we want to bring that success to PEI.”
Government has committed $1 million to the program and it will operate until either the full amount is committed or March 31, 2020, whichever comes first. DPAP will be administered by Finance PEI -- a provincial crown corporation – and will be based on a first come first serve basis.
“First time homebuyers get a hand up from the PEI government!” said Greg Lipton, president of the PEI Real Estate Association. “This is a wonderful opportunity for young people, as it removes the barrier of trying to save up enough money for a down payment while paying rent.”
Canada Mortgage and Housing Corporation and Genworth Mortgage Insurance & Homeownership both support DPAP and have confirmed that the program qualifies as an eligible source of nontraditional sources of down payment for their mortgage insurance purposes.
“If programs like the one announced today can be put in place to alleviate some of the financial stress of purchasing a home in PEI, that is a positive thing and a step in the right direction to solving the current housing crisis on PEI – not just for our young people, but for all Islanders,” said Zac Murphy, member of Charlottetown Youth Matters, a youth retention advisory board for the city of Charlottetown.
Islanders can apply for the program using an online form at www.princeedwardisland.ca/homedownpayment.