Details have just been announced about two parts of the NL government’s five part plan to improve affordable housing in the province. These two policies are directed toward assisting first time homebuyers (FTHB) with their down payment and closing costs. Summarized, FTHB will be able to apply for:
a repayable loan up to five percent of the purchase price of a new or existing home, to a maximum purchase price of $350,000 in St. John’s.
a grant of 50% of the legal closing costs up to a maximum of $1,500.
Important facts to know:
Eligibility will be based on incomes under $95,000, with between $85,000 and $95,000 seeing loan amounts reduced on a sliding scale.
There will be 150 applicants successfully supported by these policies.
Down payment assistance loans will not have to be repaid for 5 years from time of purchase.
Closing cost grants match the Federal program, which means FTHB could see up to $3000 contributed by government toward closing costs.
Program application will open November 1, 2023
Without question, this is an incentive that anyone thinking about a first home will need to explore, as a down payment assistance program like this will allow people the ability to enter the housing market without having the 5% savings already made. For those buyers who already have their down payment saved for, allowing them to keep their savings and schedule for gradual repayment of the loan in time will positively impact their financial stability. And finally, with $3000 available between federal and provincial funding for closing costs, a fully funded grant could offset roughly 60% of the expected closing costs, leaving buyers with more money in their pockets.
If you are a first time buyer looking for more information about this newly minted program, send me a message today - I can help answer any questions you might have and take the mystery out of the process of buying your first home!