P.E.I. news: Pay-to-own housing program launched

The province of Prince Edward Island has launched a new rent-to-own housing support program.

The pilot program will give people a chance to buy their home without having to immediately provide a down payment, or a pre-approved mortgage.

Finance PEI will buy applicants’ property on their behalf and enter into a five-year rent-to-own agreement on the same day the home is purchased.

The province says participants can buy their property from Finance PEI at any point during those five years with an approved mortgage.

In order to be eligible for the program, applicants must:

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  not currently own a home
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  can demonstrate that they have been recently declined by a financial institution for mortgage financing to purchase a home
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  reside in P.E.I. at the time of applying for the pilot program
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  have a satisfactory credit rating and must not have outstanding debt obligations on file in the province’s central default registry
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  have a total annual household income of $100,000 or less per annum (family); or $65,000 or less per annum for an individual applicant
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  at least one is a Canadian citizen

Eligible properties must:

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  be occupied by the successful program participant as a single-family dwelling, and be their principal residence; rental, seasonal and recreational properties are not eligible
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  be located in Prince Edward Island
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  pre-existing, new construction financing is not eligible under the program
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  have a purchase price not exceeding the program maximum of $350,000 (plus taxes, closing and legal costs)

“A tight housing market and increases in construction cost have made housing prices out of reach for many Islanders,” said P.E.I. Minister of Housing, Land and Communities Rob Lantz in a Thursday news release. “We want to help Islanders get a foot in the door towards home ownership as we continue to find ways to help Islanders who wish to move out of the rental market and into homeownership.”

Applications are available at the Finance PEI office in Charlottetown. More information on the program and a downloadable application can be found online.

For more P.E.I. news visit our dedicated provincial page.