WHITEHORSE— A new Down Payment Assistance Program will make it easier for Yukoners to buy their first home and will create more movement in the rental market, Minister responsible for Yukon Housing Corporation Scott Kent today announced.
“Saving for a down payment is one of the key barriers to home ownership,” Kent said. “Some Yukoners are paying the same amount in rent that they would for a monthly mortgage payment. The only thing holding them back is saving the required down payment.
“This program is designed to help people overcome that down payment hurdle and achieve home ownership,” Kent added. “Helping people move into their own homes will also create more available units in the rental market.”
The new program is intended to assist households that may be eligible for bank financing but have not accumulated a sufficient down payment on a home, condominium or townhouse. Assistance is provided in the form of a deferred loan and registered on title as a second mortgage.
The applicant must provide a minimum of two-and-a-half per cent of the purchase price, and must qualify for a bank mortgage where the total down payment is at least seven-and-a-half per cent of the purchase price, of which the Yukon Housing Corporation (YHC) loan is a maximum of five per cent of the purchase price.
The YHC loan is subject to two per cent interest for a five-year fixed-term mortgage. Payment options are to be determined on an individual basis, allowing some flexibility for applicants. The loan principal and accumulated interest must be repaid upon the sale of the dwelling.
The maximum loan amount for this program is $18,000, which is five per cent of the purchase price of a $365,000 home, condominium or townhouse.
“The Yukon Housing Corporation is in place to support the housing needs of Yukoners,” board chair Claire Derome said. “We will continue to identify and implement innovative housing solutions that work for Yukon people.”
Communications, Yukon Housing Corporation