October 9, 2018

P.E.I. government announces interest-free loan plan to help first-time home buyers with down payments

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The Prince Edward Island government has released details of a new program aimed at making it easier for Islanders to purchase their first home.

Under the down payment assistance Program (DPAP), the provincial government will provide interest-free loans – worth up to five per cent of the purchase price of an eligible property – to qualified applicants. The loans are repayable over 10 years.

The program was originally announced as part of P.E.I.’s housing action plan.

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“This is a wonderful opportunity for young people, as it removes the barrier of trying to save up enough money for a down payment while paying rent,” said Greg Lipton, president of the P.E.I. Real Estate Association.

Canada Mortgage and Housing Corporation and Genworth Mortgage Insurance and Homeownership both support DPAP and have confirmed that the program qualifies as an eligible source of non-traditional sources of down payment for their mortgage insurance purposes.

“If programs like the one announced today can be put in place to alleviate some of the financial stress of purchasing a home in P.E.I., that is a positive thing and a step in the right direction to solving the current housing crisis on P.E.I. – not just for our young people, but for all Islanders,” said Zac Murphy, member of Charlottetown Youth Matters, a youth retention advisory board for the city of Charlottetown.

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