Information and Education Seminar

Transcription

1 Region of Peel Home in Peel Affordable Ownership Program Information and Education Seminar Program and Process Overview

2 Why launch the Home in Peel Affordable Ownership Program? The Affordable Home Ownership Program is an excellent opportunity for the Region of Peel to respond to one more facet of housing needs along the affordable housing continuum This program will help successful purchasers to accumulate assets by purchasing a home and allows them to decide where and how they wish to live This program will help to free up rental housing stock within the Region Successful implementation of this program will reinforce the Region of Peel as a leader across Ontario municipalities in providing an affordable home ownership initiative

3 Program Mandate The Home in Peel Affordable Ownership Program: is designed to help low to moderate income earners who are currently renting their home with down payment assistance in order to be able to purchase a resale home, in the Region of Peel. Under the Canada-Ontario Affordable Housing Program, the Region of Peel has been allocated $2.85 million for down payment allocations

4 What is Home in Peel? provides up to $10,000 to approved purchasers towards the down payment on a resale home in the Region of Peel. this is a forgivable loan for down payment assistance only. applicants are responsible for all other related closing costs. applicants must be able to qualify for mortgage financing and will have 120 days from their date of program approval to submit a Conditional Offer of Purchase and Sale.

5 Applicant Eligibility Criteria Applicants must be at least 18 years old Must be currently be a renter Earn a total household income of $75,800 or less Must not own a home or an interest in a home inside or outside of Canada Must be able to independently qualify for and secure mortgage financing Must be able to pay for all additional closing costs

6 Home Eligibility Criteria Home must be located within the Region of Peel (Brampton, Caledon or Mississauga) Home must not exceed the maximum purchase price of $247,000 Resale homes only Modest in size and amenities relative to community norms Detached, semi-detached, townhouse (condo or freehold), row or stacked home, or high-rise condo units Duplex, triplex and mobile home units do not qualify

7 Program Process Overview Home in Peel program funding available as of May 12, 2008 Applicant completes and returns application form Region of Peel reviews applications in accordance with program eligibility criteria Region of Peel sends a Conditional Program Approval Letter to the approved applicant. Applicant now has 120 days to bring a Conditional Offer of Purchase and Sale to the Region of Peel representative

8 Purchaser and Mortgage Broker secure Mortgage Pre-Approval Financing Real Estate Agent counsels Purchaser on the home buying process A Conditional Offer of Purchase and Sale is placed on a home in the Region of Peel (in accordance with the maximum house price of $247,000) Forward Mortgage Pre-Approval Financing and Conditional Offer of Purchase and Sale to Region of Peel Real Estate Agent and Purchaser arrange for a home inspection Forward a copy of the Home Inspection report to the Region of Peel

9 Region of Peel sends information to CMHC Region of Peel will contact the Purchaser about their Loan Agreement After returning the signed Loan Agreement to the Region of Peel, purchaser will be given a Conditional Loan Approval Letter for their lender Within 15 days of executing the Loan Agreement and at least 4 weeks before the closing date, Purchaser, Mortgage Broker, Real Estate Agent and Lawyer work together to provide copies of: Firm Mortgage Approval Mortgage Insurance Under-Writing Approval Firm Offer of Purchase and Sale Any other requested information as per the Regional Solicitor to the Region of Peel Lawyer provides a completed package to the Region of Peel for the Regional Solicitor to review

10 Region of Peel requests amount of down payment loan assistance from Ministry of Municipal Affairs and Housing to be held in trust until final deal approval by the Regional Solicitor On or before closing day: Regional Solicitor advances the down payment assistance to the Purchaser s Lawyer, to be held in trust until closing (in the form of a cheque) On closing day: Purchaser s Lawyer registers the down payment loan on title for the Region as the second mortgage. Lawyer reports to the Region of Peel/Regional Solicitor the title certifications and other closing documents After closing: Region of Peel sends new homeowners a Post-Closing Survey and a Home Maintenance Schedule During 20-year affordability period: Purchaser adheres to annual reporting requirements of the Region of Peel. Annual updates will be sent to all purchasers

11 Additional Program Rules 60+ days are required from the date of: firm offer of acceptance firm closing date (This is needed to give enough time for internal Regional financial processes) All approvals are conditional upon and subject to satisfactory receipt of: final Mortgage Insurance Under-Writing Approval for the eligible purchaser final deal approval by the Region s solicitor

12 Conditional Approval It is the final mortgage under-writing approval that will secure the loan for the purchaser s down payment The Region s Conditional Approval Letter given to purchasers is a conditional approval only until final mortgage insurance under-writing review is conducted and approved If denial is received at the final under-writing stage of the home purchasing process, the Region of Peel and/or the Canada-Ontario Affordable Home Ownership Program will not be responsible for any costs, losses or liabilities that are or may be incurred by the individual purchaser. The purchaser would no longer be eligible for participation in the Home in Peel Affordable Ownership Program, and as a result, would not receive the down payment loan assistance

13 Defaults: Repaying the Loan Defaults are conditions where repayment of the loan is necessary: If the home ceases to be the sole and principal residence of the purchaser(s) If the home is sold before the 20-year affordability period If the purchaser(s) becomes deceased If the purchaser claims bankruptcy or insolvency The Loan Agreement all purchasers will sign with the Region of Peel details all default conditions purchasers are encouraged to review the agreement with their lawyer. *The down payment loan becomes forgivable on the 20 th anniversary date of the purchase, if no default has occurred.

14 Thank you for participating If you have any questions about Home in Peel, please contact: Laura Kemble Housing Initiatives Region of Peel , ext