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What is Downpayment Assistance Program
It is true to believe, but grants to help new home buyers really exist. Such assistance are grant or loan programs that provide a portion of the down payment to qualified borrowers. Down payment assistance (DPA) helps home buyers with grants or low-interest loans that reduce the amount they need to save for a down payment.
The incentive is available to first-time homebuyers with qualified annual incomes of $120,000 or less. A participant’s insured mortgage and the incentive amount cannot be greater than four times the participant’s qualified annual income.
With this incentive, Government of Canada provides:
- 5% or 10% for a first-time buyer’s purchase of a newly constructed home
- 5% for a first-time buyer’s purchase of a resale (existing) home
- 5% for a first-time buyer’s purchase of a new or resale mobile/manufactured home
Note: That the status of these programs change regularly. Moreover, once quotas are reached many such programs end, so contact the source for the latest info.
For more information on qualifications, Reach The Expert Today
Mortgage Broker Gurbir Sandhu Canada
Who qualifies for down payment assistance?
DPA programs vary by location, but many home buyers could be in line for thousands of dollars in down payment assistance if they qualify. Down payment assistance programs are typically meant for first-time home buyers. However, a repeat homebuyer often counts as a “first-time buyer” if they haven’t owned a home in the past three years. Other requirements might include income caps and buying a home in a qualified area etc.
Every down payment assistance program is different from others. The exact requirements to qualify will depend on where you live, where you are buying and what programs are available.
- Restricted to first-time home buyers.
- Buyers often must have low- to moderate-income.
- The buyer is using the home as their primary residence.
- The home is in a “targeted” census tract.
- The DPA is used in conjunction with an approved mortgage program.
- You work with an approved mortgage lender for the loan program
Still have questions about the First-Time Home Buyer Incentive?
CALL US @604-704-5000
