The mortgage industry’s representative body has welcomed a new program in Prince Edwards Island which will help first-time buyers get on the property ladder.
The provincial government’s Down Payment Assistance Program (DPAP), will provide interest-free loans – worth up to 5% 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.”
A million dollars has been committed to the program, which will be administered by provincial crown corporation Finance PEI and allocated on a first-come basis.
The program is being supported by CMHC and Genworth Mortgage Insurance.
Program will “alleviate pressures” caused by policy
Mortgage Professionals Canada has welcomed the provincial government’s move and says that it will help to alleviate pressures that have been created by federal policy changes to mortgage eligibility and insurance.
“Today’s announcement by the government of PEI to support first-time home buyers recognizes the new challenges which exist for those looking to buy their first home. This decision encourages them, and our members.” said Paul Taylor, President and CEO of Mortgage Professionals Canada. “Home ownership remains a primary goal for Canadians from coast to coast; owning a home is a key part to building lifelong financial security.”