Description

The Down Payment Assistance Program (DPAP) is a pilot program to help residents of Prince Edward Island, who have modest incomes, in buying a first home.

You can apply to get a conditionally interest free loan of up to five per cent of the purchase price of a home, to a maximum loan of $17,500.

Benefit Amount

Up to $17,500 in interest free loan — up to 5% of the purchase price of a home.

Eligibility Criteria

You may be able to get help under the Down Payment Assistance Program if your situation matches all of the points below:

• At least one applicant is a Canadian citizen.
• You are a first-time home buyer.
• Your total household income is $100,000 or less.
• The purchase price of the home may not exceed $350,000.
• The property is on Prince Edward Island.
• You do not have the financial ability to pay 5 per cent of the purchase price without the help of the program.
• You have a satisfactory credit rating.
• You do not have any defaulted outstanding debt obligation on file in the Government of PEI Central Default Registry.
• The purchased property must be the applicant’s principal residence (and owner occupied as a single-family residence).

For the purposes of this program, you are a first-time home buyer if you meet one of the following criteria:

• You have never purchased a home before.
• In the last 4 years, you did not occupy a home that you or your current spouse or common-law partner own.
• You have gone through a breakdown of a marriage or common-law partnership (even if you don’t meet the other first-time home buyer requirements).

Application Process

You may apply online or download a pdf version of the Down Payment Assistance Program application form, for completion, signature(s) and submission, along with the following supporting information:

• A Notice of Assessment from the Canada Revenue Agency (CRA) for the prior tax year from each applicant.
• A copy of the Applicant’s Birth Certificate, or Passport, evidencing Canadian citizenship.
• A written verification of employment confirming your date of hire, position, current annual income, employment status, and the probability for future or continued employment.

If you are deemed eligible, you will also need:

• A copy of the Applicant’s final Approval for first insured mortgage financing, from a recognized financial institution.
• A copy of the Applicant’s Agreement of Purchase and Sale for the program eligible home being purchased.

After you apply for the program, a staff person of Finance PEI will contact you to discuss your application and the next steps to determine eligibility.

If you have any further questions, contact:

• Bruce Johnston, Senior Financial Analyst Finance PEI,
• 94 Euston Street, 2nd Floor,
• PO Box 1176, Charlottetown, PE.
• Phone: (902) 894-0379.
• Fax: (902) 368-6255.
• Email: bjohnston@gov.pe.ca