Q: Who is eligible?
A: Applicants must be first-time homebuyers from any region of the province who meet the First-time Homebuyers Program (FHP) requirements (including income level) and have been pre-approved for a mortgage by a recognized financial institution.
Q: Can I qualify for assistance if I have a guarantor?
A: Yes, guarantors are permitted as they are not listed on the title of the home, only on the mortgage. Therefore, a guarantor is not required to be a first-time homebuyer.
Q: Can I have a co-applicant?
A: Yes, if they are a first-time homebuyer. A co-applicant must also be a first-time homebuyer as they are listed on the title of the home as well as the mortgage. Co-applicants must meet program eligibility criteria.
Q: How will NLHC verify an applicant is a first-time homebuyer?
A: Applicants must sign a declaration that all application information is true, and provide an affidavit affirming they are indeed a first-time homebuyer.
Q: What do I need to include with my application?
A: An eligible submission includes a fully completed application, a signed CRA Income Consent Form for Programs, a sworn affidavit and a personalized letter of pre-approved mortgage confirmation from a recognized financial institution.
Q: Can I submit my application now and my pre-approval later?
A: No. Only completed applications will be assessed for eligibility. Incomplete applications will be returned.
Q: Will an email from my lender confirming pre-approval suffice?
A: No. Pre-approval confirmation shall be in the form of a letter with an authorized signature.
Q: How do I apply?
A: Options:
Q: How many people will be assisted?
A: Approximately 150 first-time homebuyers
Q: What is the deadline for application submission?
A: There is no submission deadline at this time. However, presently the program is expected to assist approximately 150 applicants.
Q: What assistance is offered?
A: Eligible household assistance includes a grant of 50% of the legal closing costs up to a maximum of $1,500, plus a repayable loan up to 5% of the purchase price of a new or existing home, to a maximum purchase price as per program guidelines.
Q: How is the interest on the repayable loan amortized?
A: The loan is interest free for the first 5-years. Payments begin following the interest free period and are amortized over 15-years for a total period of 20-years. However, funding recipients can begin repayment at an earlier date if they choose by contacting NLHC.
Q: What are the First-Time Homebuyers interest rates?
A: Interest rates will vary, depending on when repayment begins; however, it will not exceed the prime rate minus one percent.
Q: What are the income limits?
A: Applicants must have a total household income of less than $85,000 to qualify. Total household incomes up to $95,000 are also eligible based on a sliding scale of reduced assistance.
Q: What are the maximum purchase prices allowable to receive repayable loan assistance?
A: Geographic Area:
Q: How much assistance is provided?
A: The amount of the loan will be based on a sliding scale that takes into consideration the applicant’s household income level and the cost of the home being purchased. See the chart below:
SLIDING SCALE OF ASSISTANCE
| INCOME LEVEL |
ST. JOHN’S AND LABRADOR Maximum Loan Amount* |
REGIONAL CENTRES Maximum Loan Amount |
RURAL NEWFOUNDLAND Maximum Loan Amount |
| <$85,000 | $17,500 | $15,000 | $12,500 |
| $86,000 | $17,000 | $14,500 | $12,000 |
| $87,000 | $16,500 | $14,000 | $11,500 |
| $88,000 | $16,000 | $13,500 | $11,000 |
| $89,000 | $15,500 | $13,000 | $10,500 |
| $90,000 | $15,000 | $12,500 | $10,000 |
| $91,000 | $14,500 | $12,000 | $9,500 |
| $92,000 | $14,000 | $11,500 | $9,000 |
| $93,000 | $13,500 | $11,000 | $8,500 |
| $94,000 | $13,000 | $10,500 | $8,000 |
| $95,000 | $12,500 | $10,000 | $7,500 |