New Program Helps Nova Scotians Purchase Their First Home

HALIFAX, NOVA SCOTIA--(Marketwired - April 26, 2017) - First-time home buyers struggling to save enough for a down payment could soon get access to an interest-free loan from Housing Nova Scotia to make their dream of homeownership come true. The governments of Canada and Nova Scotia are investing $1.3 million to fund a new one-year Down Payment Assistance pilot program.

Andy Fillmore, Parliamentary Secretary to the Minister of Democratic Institutions and Member of Parliament for Halifax, on behalf of the Honourable Jean-Yves Duclos, Minister of Families, Children and Social Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), along with the Honourable Joanne Bernard, Minister responsible for Housing Nova Scotia, made the announcement today.

Quick facts:

The new Home Ownership Down Payment Assistance Program will help 100-125 modest-income Nova Scotians who are pre-approved for an insured mortgage from an accredited lender, but struggle to save for the required down payment because of their income. 

The program will offer interest-free loan of up to five per cent of the purchase price of a new or existing home, to a maximum purchase price of $280,000 in Halifax Regional Municipality (HRM) and $150,000 in the rest of the province.

To be eligible, applicants must have a total household income of $75,000 or less. Based on a sliding scale of household income and house purchase price, the down payment assistance loans can range between up to $7,500 and $14,000 (in HRM). Eligible home buyers will have ten years to repay their interest-free loan. Payments can be waived for the first year to allow new homeowners to adjust to any unforeseen costs.

Quotes:

"The Government of Canada is pleased to partner with the provincial government to provide a program that will benefits modest income families and individuals in Nova Scotia. This will have a positive impact on new home owners and contribute to building a strong foundation for a sustainable economic future."- Andy Fillmore, Parliamentary Secretary to the Minister of Democratic Institutions and Member of Parliament for Halifax

"Saving up for a down payment remains one of the main hurdles for people wanting to purchase their first home. While we continue to help our most vulnerable citizens with housing supports, we can't forget that many modest-income families want to buy homes so they can lay down roots here in Nova Scotia. When we help families, we help strengthen our province."" -Joanne Bernard, Provincial Minister responsible for Housing Nova Scotia

"Continuing to increase first-time home buyers' entry into the market is a vital piece of the home buyer's market cycle. Without first-time home buyers, many would-be sellers will remain in their current homes because they are unable to sell. The Down Payment Assistance Pilot Program will be a benefit to the overall residential construction industry and Nova Scotia's economy." -Sherry Donovan, Chief Executive Officer, Canadian Home Builders' Association - Nova Scotia

This is welcome news for first time home buyers and for the Nova Scotia economy. First time home buyers stimulate movement upwards for many sellers and these transactions impact other industries such as movers, contractors, building inspectors, and retails. It's good for everyone." - Anne DaSilva, president of the Nova Scotia Association of REALTORS®.

Associated links:

• CMHC has been helping Canadians meet their housing needs for more than 70 years. As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers unbiased housing research and advice to Canadian governments, consumers and the housing industry. Prudent risk management, strong corporate governance and transparency are cornerstones of CMHC's operations. For more information, please call 1-800-668-2642 or visit www.cmhc.ca.

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