Down Payment Assistance Program (DPAP) in Prince Edward Island

Owning a home is a dream many aspire to fulfill, but financial barriers often stand in the way. Good news for residents of Prince Edward Island! The Down Payment Assistance Program (DPAP) is a pilot initiative aimed at empowering eligible residents with modest incomes to purchase their first home.

How Much Can You Receive?

This program grants eligible applicants a conditional, interest-free loan of up to 5% of the home’s purchase price, capping at a maximum of $17,500. This generous offering aims to cover the down payment of the home, exclusively, ensuring an easier pathway to homeownership.

Understanding the Terms

Although the loan carries no initial interest, a fixed rate of 5% per annum is applied. This interest will accumulate throughout the loan term and is completely forgiven once the principal is fully repaid. Applicants can choose to pause their payments for the first year to buffer against unexpected expenses.

Who is Eligible?

Wondering if you qualify for this fantastic opportunity? To be eligible:

• At least one applicant must be a Canadian citizen.Applicants should be first-time homebuyers.
• The total annual household income must not exceed $100,000.
• The home’s purchase price should be $350,000 or below.
  The property must be located on Prince Edward Island.
• Applicants should lack the financial capacity to cover 5% of the purchase price independently.

Even those who have faced a marriage or common-law partnership breakdown may be considered first-time homebuyers under this program.

]Additional Requirements

Ensure a positive credit rating and no outstanding defaulted debts in the Government of Prince Edward Island Central Default Registry. The purchased property should be the primary residence and must function as a single-family dwelling.

How to Apply?

The application process is straightforward. Apply online or download the application form from the official website. Submission should include a Notice of Assessment from the CRA for the prior tax year, proof of Canadian citizenship, and written verification of employment. Upon eligibility confirmation, further documents, including approval for first insured mortgage financing and an Agreement of Purchase and Sale, will be requested.

What Happens Next?

After submission, a representative from Finance PEI will reach out to discuss your application and guide you through the subsequent steps to ascertain eligibility.
Additional Resources and Contact Information

First-time homebuyers are advised to review educational materials from the Canada Mortgage and Housing Corporation (CMHC). For any queries, contact Bruce Johnston at Finance PEI. Applications will be entertained until the budget is exhausted or until March 31, 2024, based on a first-come-first-served policy.

Take this step towards homeownership today and make your dream a reality with the Down Payment Assistance Program.