Province announced new programs to help 1st time home buyers

Newfoundland and Labrador has announced new programs to help people buy homes for the first time.

The Home Purchase Program will provide grants of $3,000 to individuals and families to go toward the down payment of a home valued at under $400,000 (including HST).

Newly constructed, and existing new or never sold/occupied, homes are included in the program.

The province is investing $1 million in project for the next fiscal year, with the intention of providing 330 grants over the next 12 months.

First-time Homebuyers Program

The other program that the provincial government announced is the First-time Homebuyers Program, which will replace the former Down Payment Assistance program.

The $1.25 million effort is meant to help around 100 households secure home ownership over the next year.

Along with the name change, there will also be enhancements made to the program, which government says will address the impact of new federal mortgage rules.

Changes include:

• Increasing the average household income maximum for eligibility from $65,000 to $75,000 for full benefit and up to $85,000 for partial benefit;
• Allowing for applicants to have a guarantor to support mortgage financing;
• Requiring applicants to have pre-approval from a financial institution prior to applying for the program;
• Providing eligible households with five per cent of the purchase price of up to $250,000 for a new or existing home, and $2,000 of that funding will be a grant.

The Newfoundland and Labrador Housing Corporation will start accepting applications for the programs beginning April 1.