Saskatchewan Party pledges new program to help 1st time home buyers

The Saskatchewan Party announced a plan to make first time home purchases easier.

Brad Wall made the announcement in Saskatoon on Monday, pledging to bring the program forward if the Sask. Party is re-elected next month.

"Young people were saying to me and to our MLAs 'You know the challenge we have though sometimes, especially with a strong economy, is being able to afford that down payment on our first home or maybe a first condo'," Wall said.

"That's important from a growth perspective for the province because it's important for Saskatchewan young people to choose here, to choose to work here."

The new First Home Plan would allow Graduate Retention Program recipients to use up to $10,000 of their unused GRP benefits toward the down payment on the purchase of a first home.

A Sask. Party spokesperson clarified that for a person looking to use the program, he or she would get an advance of an interest-free loan, the amount for which would be whatever is unused from that person's GRP amount, up to a maximum of $10,000.

If that person keeps the house for four years, then he or she doesn't have to repay the loan, the spokesperson said.

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"That's a good sign, their enrollment with the graduation retention plan - that they want to be a part of Saskatchewan's future. A better sign that they are going to stay here for the long term is if they buy a house, if they put down roots," Wall said.

The Graduate Retention Program provides Saskatchewan income tax credits of up to $20,000 for tuition fees paid by graduates who live in Saskatchewan.

The Sask. Party said the program will cost $900,000 in the first year, $1.8 million in the second year, $2.7 million in the third year and $3.6 million in the fourth year. If elected, the new plan would come into effect on May 1.

They also pledged to increase the Saskatchewan Advantage Scholarship from $500 to $750 per student, per year when the province's finances strengthen. That increase will cost $4.5 million a year when it's fully implemented.