First-time buyers in Newfoundland & Labrador are to be given a financial boost to enable them to get on the property ladder. Premier Paul Davis has announced the Downpayment Assistance Program (DAP) which will run as a pilot scheme for 2 years. It is expected to help up to 125 low and moderate income earners each year. To qualify buyers must earn $65,000 or less and be pre-approved for a home loan through an accredited mortgage lender.
CBC News reports that there are maximum purchase prices for the program; $250,000 in St. John’s and Labrador; $200,000 in Clarenville, Gander, Grand Falls-Windsor, Corner Brook and Stephenville and all communities within a 30-kilometre radius; $175,000 elsewhere in the province. Repayment of the downpayment will be deferred for five years after the purchase of the home.
The government has also announced help for those who do not qualify for the DAP because of income slightly above $65,000 or for a home that is marginally above the maximum purchase price.
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