There are a number of government funding programs for home buyers and current homeowners to help with the costs of buying or updating a home in Canada. Although each of the provinces have their own provincial programs, there are a few federal programs as well. Below is a list of the Federal programs as well as provincial programs for Newfoundland and Labrador.
Federal Programs
First-Time Home Buyers’ Tax Credit
A $5,000 non-refundable income tax credit on a qualifying home. The credit provides up to $750 in tax relief to assist first-time home buyers with their purchase costs.
Home Buyers’ Plan
A one-time withdrawal up to $25,000 from a Registered Retirement Savings Plan (RRSP) by first-time home buyers to help purchase or build a home. Generally you have to repay all withdrawals from your RRSP within 15 years.
CMHC Green Home Program
When you use CMHC-insured financing to buy or build an energy-efficient home or make energy-saving renovations, you may qualify for a premium refund of 10% on your mortgage default insurance and a premium refund for a longer amortization period (if applicable)
Provincial Programs
Downpayment Assistance Program (DAP)
Applicants must be first-time home buyers who live in the province and meet the requirements. This program will assist approximately 100-125 applicants annually. The program will provide eligible households a repayable loan of up to 5% for down payment on a new or existing home (purchase price must be less than $200,000 in Clarenville, Gander, Grand Falls-Windsor, Corner Brook and Stephenville and all communities within a 30 km radius). 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. Typically household income levels must be under $75,000 to qualify and the interest rates on the loans vary but will not exceed the prime lending rate minus 1%.
Home Energy Savings Program (HESP)
Available as of July 4, 2017. It is a provincial initiative designed to assist low-income households with electrically heated homes which consume 15,000+ kWh of electricity annually. The program will provide non-repayable grants of up to $5,000 to help these households make energy efficiency upgrades to their homes.
Home Modification Program (HMP)
This program is designed to provide funding to assist homeowners with low-to-moderate income who require accessibility changes to their residences, which can help promote independence, self-reliance, assist with a better quality of life, and enable individuals to remain in their own homes for a longer period. The program is available to homeowners with low-to-moderate income requiring accessibility modifications to their homes (an Occupational Therapist’s report is required clearly indicating whether modifications are urgent or non-urgent). Applicants must have an income of $46,500 or less. Newfoundland and Labrador Housing Corporation provides funding to eligible homeowners in the form of forgivable grants and repayable loans. Funding is limited to the costs associated with repairs. Persons with accessibility needs may receive a forgivable loan of up to $7,500. Repairs exceeding these levels may be addressed under a repayable loan of up to $10,000
Provincial Home Repair Program (PHRP)
This program is designed to assist homeowners with low income who require repairs to their homes, or to bring dwellings up to minimum fire and life safety standards, with improvements in basic heating, electrical and plumbing services. To be eligible for this program homeowners must have an income of $32,500 or less, and must have owned the home for at least 5 years (except in the case of an emergency). There is a lifetime assistance cap of $12,500 and an application for a second project can be submitted after 7 years. Newfoundland and Labrador Housing Corporation provides funding to eligible homeowners in the form of forgivable and repayable loans. Funding is limited to the costs associated with repairs. Forgivable loan funding is available for homeowners up to a maximum of $5,000 ($6,500 in Labrador). Repairs exceeding these levels may be addressed under a repayable loan of up to $12,500 ($15,000 in Labrador).