Homeownership is a dream that many hope to attain in their lifetime, however it is becoming increasingly more difficult to attain that dream. The youth of today start their adult lives burdened with the debt of student loans and often end up having to rent because they are unable to save money for a down payment. A steady job and good credit are the first step on the way to home ownership but routines form and life happens and before you know it you’re married and your family is growing and the dream of home ownership seems less and less likely. Coming up with the initial down payment can be extremely difficult and although there are options for some, like gift letters from family member or withdrawing from your RRSP’s, if you we’re able to invest in them in the first place, these options aren’t available to everyone. If you have all your ducks in a row but are just not able to come up with initial down payment, here in Dufferin County we are fortunate to have access to The County of Dufferin Homeownership Program. It’s a program that has been implemented to assist those who qualify, with an interest free loan toward the down payment of a home purchase to aid them in starting their journey toward the dream of attaining home ownership. The County can provide up to 5% in assistance to qualifiers, to a maximum of $22,750.00
We recommend that you review the following criteria to see if you meet the eligibility requirements:
1. Are you at least 18 years of age?
2. Are you currently renting?
3. Do you have a total household income either at or below Annual Maximum Household Income Level set by the Ministry (subject to Change)
4. Your assets must be valued at $22,750 or less
5. Do you qualify for financing at a bank or other lending institution?
6. The property you purchase must be a single family residence, it can’t be a duplex or a multi family unit
7. The sale price must be at or below the average resale price (subject to change)
8. Loan amount is 5% of the purchase price to a maximum of $22,750
If you meet the above criteria, you’ll have to have your financial institution complete the mortgage approval form which includes verifying your annual gross household income and total assets. The next step is to complete the homeownership application form, you can download the forms by clicking here. Once you’ve completed both of these steps you need to submit both to the County of Dufferin, Community Service with the required attachments along with a copy of you most recent (complete) income tax return with the Notice of Assessment, secondary proof of income, verification of assets, 2 pieces of photo identification for purchaser(s)proof of status in Canada.
The County will review your application and if you are approved you are given a 60 day commitment. This means that you must complete the purchase within 60 days in order to access the approved funds. You will be required to provide an accepted, Agreement of Purchase and Sale. You will be required to have a minimum of 30 day closing date so that there is time for the down payment loan to be processed. The funds will be provided on the closing date.
Of course, there are conditions relating to the repayment of the loan, they are as follows;
1. If the homeownership unit is owned by the eligible purchaser for the maximum twenty (20) years, the loan will be forgiven.
2. If a homeownership unit is sold after twenty (20) years, there would be no repayment of the loan or capital gains.
3. If a home is sold before the twenty (20) year period expires, the owner will have to repay the original loan in addition to five percent (5%) of the realized capital gains.
4. If a unit is sold for less than the original purchase price, the difference between the down payment assistance and the depreciation amount will be repayable. The unit must be sold for fair market value and the purchase and sale of the unit must be an arm’s length transaction.
5. If a purchaser ceases to occupy a homeownership unit as a sole and principal residence within twenty (20) years of the date of purchase, it is deemed a sale and the original loan plus approx. five percent (5%) of the capital gain
You can contact Natalie Hunzinger, County of Duffering Community Services, 30 Centre Street, Orangeville, Ontario 519-941-6991, ext 2103.
As with any part of the buying or selling process, it can be complicated. It would be our pleasure to assist you through process and provide you with guidance and any contacts that you may require. Please feel free to contact us: