Should You Get Your Home Pre-Inspected?

Surprises are supposed to be fun. But in the world of real estate a surprise can be a catastrophic deal breaker that leaves a bad taste in everyone’s mouth. As a home owner you know your home inside and out and you’ve lived in it for this long without any problems, right? But let’s face it, not everyone is qualified to spot building code deficiencies. When was the last time you actually crawled up into the attic to inspect the integrity of your roof supports? Truth is, most of us don’t really pay attention to the minor details of our home until something needs to be fixed. And more often than not there may be minor deficiencies we don’t even know about that may matter to some people, and not matter to others.

Usually when a purchaser makes an offer on a home they are offering a price based on what they think they are getting at that time. They are assuming there are no major unknown issues with the house, usually based on the Property Condition Disclosure Statement made by the seller, which discloses any issues with the home that the owner is currently aware of. If a home inspection comes back with a bunch of issues this opens up negotiations for repairs and price adjustments or the purchaser may walk away from the deal. Usually at this point both parties have already agreed to on a purchase price and more often than not neither party wants to leave more money on the table. This is where things can get hairy and it’s usually up to the agent to find creative solutions.

One way to avoid these problems is to get a pre-inspection on your home. Getting your home pre-inspected gives you peace of mind that there will be no surprises down the line and it gives buyers confidence in what they’re buying. Not only that, but buyers are more open to offering more on a property if they know that they are buying a quality home with little to no issues. Another benefit is that, as a seller, you can use the home inspection to spot any deficiencies in the home before setting a list price. Now you have a more accurate pricing of your home and if there are no major problems with the home you can use the pre inspection as a marketing tool to let prospective buyers know just how great your home is.

Aside from all this, if nothing else, a pre-inspection can let you know which items should be addressed before hitting the market. Again, not everyone knows or can spot every deficiency in a home and it would be nice to have an unbiased third party take a look and let you know the items that should be addressed. And not every item needs to be addressed. Home inspections are notorious for pointing out every single thing about a home that doesn’t adhere to current building code. For example, I’ve seen home inspections state that the steps on the stairs were an inch too short or there were only two outlets in a bedroom instead of three. These things are probably not issues that need to be dealt with. It’s important to remember that a home inspection will compare your home with the current building code. If a home is 30 or 40 years old then it would have been built according to an older building code so most small things will be given a free pass unless it’s a safety issue or the home insurance provider has an issue with it.

As of the time of this writing a home inspection will run about $400 to $500 and it is usually paid by the purchaser during their home inspection period. A pre-listing home inspection would be paid by the seller but could save you time and money down the line. If you don’t mind coughing up a few hundred dollars to save you a few thousand dollars of headache down the road, I’d say that’s well worth the money.

July 28, 2020July 30, 2020

2020 Summer Market Update

2020 Has definitely been a year for the books. After a decent start to the year in real estate we were suddenly thrown into a global coronavirus pandemic which saw a lot of businesses shut down and required many of us to stay at home. Surprisingly we didn’t slow down for long as home sales picked right back up and we are seeing lots of showings and offers coming in. Listings have still slowed down as most people are unaware of the buyer activity and thinking it is not a great time to list. This could be a good opportunity for someone wanting to sell their home as there is less competition on the market and still a large pool of buyers looking. government programs such as CERB helped many people through the mandatory lockdown who could not work, which helped keep our economy going.

2020 Market Update — Watch on YouTube – 2020 Real Estate Market Summer Update

CMHC Tightening Qualification Rules

Canada Mortgage and Housing Corporation (CMHC) has been tightening the qualification rules for borrowers of high-ratio mortgages. The new rules have lowered the debt ratio and increased the minimum credit score. This is in response to the covid-19 pandemic which has left many Canadians vulnerable.

New Mortgage Qualification Rules:
If you have less than 20% down payment, CMHC will now be:

– Limiting the Gross/Total Debt Servicing (GDS/TDS) ratios to its standard requirements of 35% (from 39%) and 42% (from 44%),

– Establishing a minimum credit score of 680 (from 600 previously) for at least one borrower; and

– No longer treating non-traditional sources of down payment that increase indebtedness, as equity for insurance purposes.

What Is A High-Ratio Mortgage?
Simply put, a high-ratio mortgage is when a borrower has less than 20% down payment on a home. The minimum down payment amount in Canada is 5%, however, if a down payment is less than 20% the borrower will be required to get default mortgage insurance on their loan. This is typically done through CMHC or Genworth.

* It is important to note that typically when one mortgage insurer changes its rules the others usually follow suit. In this case Genworth and Canada Guaranty Mortgage Insurance Co. have not increased qualification rules.

Market Stats

Corner Brook Market Stats – Year-to-Date (Jan-June)

	2020	2019	% Change
Sales	66	65	+ 1.5%
New Listings	161	215	– 25.1%
Active Listings	179	208	– 13.9%
Median Price	$176,000	$170,000	+ 0.9%
Average Price	$189,543	$185,816	+ 0.2%

Pasadena Market Stats – Year-to-Date (Jan-June)

	2020	2019	% Change
Sales	9	18	– 50%
New Listings	38	51	– 25.5%
Active Listings	39	44	– 11.4%
Median Price	$195,000	$220,000	– 11.4%
Average Price	$202,889	$233,328	– 13.0%

Buyer Activity Still Strong

Surprisingly we are still getting a lot of buyer activity. We are still receiving lots of viewing requests and offers and sales are still coming in. For local residents we require each person to wear a mask and wear gloves or use hand sanitizer and we limit the amount of people viewing the home at a time. There are covid disclosure forms that we get filled out that disclose whether any of the parties have had to quarantine or if they have come into contact with anyone that may be at risk for covid-19. For out of province home buyers we are offering video tours, virtual tours, and video calls as we personally tour the property with those prospective buyers over facetime or skype. This gives them the opportunity to look at the home in detail without actually physically having to be there. If they choose to make an offer we can do all the paperwork digitally.

Listing Inventory Down

Listing inventory is down a whopping 25% so far this year compared to last year but sales have stayed relatively the same. That means there is a shortage of listings and still just as many buyers out there waiting for the right property to hit the market (you can see a list of buyers that Team Bishop is currently working with). In fact, the industry as a whole is struggling to fill the demand of pent up buyers that can’t find what they’re looking for with the current listings.

March 21, 2019

2019 Federal Budget Adds More Help For First-Time Home Buyers

With rising housing costs across the country, the federal government has been pressured to do something to help younger first-time home buyers who have been priced out of the higher priced areas such as Toronto and Vancouver. The federal budget for 2019 has been released and there are two main additions regarding real estate and first-time home buyers.

CMHC First-Time Home Buyer Incentive

The budget introduced the Canadian Mortgage and Housing Corporation (CMHC) First-Time Home Buyer Incentive. This allows prospective buyers who have the minimum down payment for a home to apply to finance between 5% and 10% of their mortgage via a shared equity program. Buyers can get up to 10% on newly constructed homes while 5% applies to existing homes. This would lower the mortgage amount borrowed and would help first-time home buyers qualify for a higher mortgage, even with the mortgage stress test, while also lowering their monthly mortgage payments.

This incentive would only apply to insured mortgages and the buyer would still have to come up with the minimum 5% down payment. Applicants must have a maximum household income of no more than $120,000 and the purchase price of the home can only be 4 times their household income. So, for a family of first-time home buyers with an annual household income of $80,000 the total mortgage size would be $320,000.

The budget document states “For example, if a borrower purchases a new $400,000 home with a 5% down payment and a 10% CMHC shared equity mortgage ($40,000), the borrower’s total mortgage size would be reduced from $380,000 to $340,000, reducing the borrower’s monthly mortgage costs by as much as $228 per month.”

Buyers will still have to repay the loan, although it is unclear at this point what the terms would be. Applicants still must qualify under the federal stress test, which ensures that borrowers will be able to keep up with their payments if their interest rates were to increase. However, the lower mortgage means the borrower would only need to qualify for the lower mortgage amount.

The finance department is hoping the new program will pass in time for a September, 2019 launch.

Home Buyers’ Plan (HBP) Gets An Increase

The amount a borrower can withdraw from their RRSP for a down payment using the Home Buyers’ Plan (HBP) has been increased for the first time in 10 years. With increasing home values the federal government has increased the amount you can withdraw from your RRSP account from $25,000 to $35,000, or $70,000 per couple. The new limit will apply to withdrawals made after March 19, 2019, making it effective immediately.

February 20, 2019

2019 Corner Brook Real Estate Market Outlook

What Happened In 2018

The Corner Brook real estate market has been slowing down over the last few years and we are now in a buyer’s market. Last year we saw the number of new listings decrease by 6.7% compared to 2017 while sales stayed the same (189 sales in 2017 and 190 sales in 2018). It’s a great time to find a good deal on a new home. If you’re a seller looking to get your home sold then it’s important to make sure your REALTOR© offers extensive marketing on your property.

Days On Market (the number of days it takes a home to sell when priced at market value) dropped to 79 days, however the average home price also dropped to $199,404, for all housing types. Interestingly, the median sales price dropped by a larger margin, telling us that more homes are selling in the lower price range of about $185,000 as opposed to the same home selling for less, although the average sale price did drop by 3.6%

	2017	2018	Percent Change
Average Sale Price	$206,795	$199,404	-3.6%
Median Sale Price	$199,900	$184,500	-7.7%
Days on Market	94	79	-16%
Total New Listings	401	374	-6.7%
Total Sales	189	190	0.1%
Sale to List Price Ratio	94.3%	93.9%	–

	2017	2018	Percent Change
Single Family	$204,856	$197,985	-3.6%
2-Apartment	$234,960	$237,222	1%
Mobile Homes	$59,500	$59,417	–

What To Expect In 2019

Last year the province had the lowest GDP growth of 0.4%. This year we are expected to lead all other provinces with a GDP growth of 5.2%. This is mostly fueled by increased offshore oil royalties and oil projects such as the By Du Nord project coming online. With new money being pumped into the economy we are hoping to see a rebound in the real estate market in 2019. We are already seeing increased activity in the first two months of this year.

If you have any questions about the real estate market you can call/text Mike Bishop at (709) 638 – 4655 or email mikebishop@hotmail.com

January 9, 2019

Bank of Canada Keeps Interest Rate at 1.75%

The Bank of Canada kept its overnight rate steady at 1.75% this morning after speculation that it might raise the rate by 0.25% again. The rate has previously been increased by 0.25% five times since 2017 in an attempt to keep inflation in an acceptable range. The last rate increase was in October 2018.

The overnight rate is set by the Bank of Canada and it is the rate other banks use to lend one-day funds among themselves. This influences other rates such as consumer loans and mortgages. Keeping the rate unchanged means the current mortgages rates should hold steady for the time being.

Although the lending and mortgage rates should remain the same, other areas of the economy will be affected by the hold on rates. The bank downgraded its expectations for Canada’s economy in 2019 from 2.1% to 1.7% GDP growth. As far as real estate and mortgage rates go, fixed rates should stay the same and those who opted for a variable rate will enjoy a continued lower rate.

December 9, 2018

5 Favorite Holiday Recipes

Christmas is a time when friends and family get together to tell stories, make memories and, of course, pack in a few extra calories. If you’re like most of us you’re probably looking for a few ideas on what to serve your guests. Great food can take your Christmas get-together to a whole new level, as well as a few good drinks.. and don’t worry, we’ve included an awesome slush recipe too 😉 Here are five of our go-to favorites.

Chocolate Mint Brownies

Here’s a spin on the usual nanaimo bar recipe for the holiday season. Nanaimo bars are always a favorite and if you’re a mint lover you’ll love these too. You can find the recipe HERE

Eggnog Fudge

Who doesn’t like eggnog? Well, ok, it’s hit-or-miss with most people. But if you are one of the lucky people who like eggnog then this eggnog fudge with nutmeg on top will blow you away. You can find the recipe HERE

Sugar Cookie Truffles

You can’t have Christmas without sugar cookies. This four-ingredient no-bake recipe uses sugar cookies, cream cheese, white chocolate, and sprinkles. It’s easy to make and could easily be made into a cake pop. You can find the recipe HERE

Christmas Crack

This one is highly addictive. Seriously. I ate about 2 lbs. of this stuff last Christmas and I would have had more if it wasn’t all gone. If you can line up crackers in a pan and melt chocolate in the microwave then you have the skill set to crank out a few pans of this stuff. The only problem you’ll have is keeping up with the demand. You can find the recipe HERE

Newfoundland Christmas Slush

What recipe list would be complete without a favorite Newfoundland Christmas tradition? Nothing gets a Newfoundlander riled up more than a good glass of rum, especially when it’s in slush form. Everyone remembers visiting their grandparents over the holidays and seeing that big tub of forbidden slush in the freezer. Well now you can make your own tub of the original Newfoundland Christmas Slush. You can find the recipe HERE

November 8, 2018November 8, 2018

Summer 2018 Market Update

As we head into the fall months we tend to see more price reductions and homes coming off the market. That’s why it’s ever important to have your agent look into off-market properties, as they may still be willing to sell their home). We also tend to see last-minute buyers pulling the trigger on purchasing a home as they see inventory dropping.

We’ve broken down our Summer 2018 market analysis into three main areas: Corner Brook, Pasadena, and Deer Lake. Currently we are in a buyer’s market in all three areas.

Corner Brook

New Listings: -7.2%
Sales: -5.4%
Days to Sell: 21.3%
Average Sale Price: -3.4%
* compared to Summer 2017

Listings are down 7.2% in Corner Brook over summer of last year and sales are down 5.4% The average price of a residential home is currently at $206,119, down 3.4% over last year. We are noticing buyers having an upper hand in a lot of transactions currently. Days on market seem to stand out the most, with a 21.3% increase from last year. Homes in Corner Brook currently take about 70 days to sell.

January and February tend to be the slower months, which means we still have a couple more months of active buyers and sellers trying to put a deal together. Last year’s fall months saw a surplus of listings, with the number of active listings comparing to the summer months of 2016.

Pasadena

New Listings: -11.4%
Sales: -1.4%
Days to Sell: 21.8%
Average Sale Price: -9.3%
* compared to Summer 2017

The number of new listings has decreased 11.4% over the same time last year but have increased over the last three years while the number of sales has decreased by 1.4%. Similar to Corner Brook, Pasadena is in a buyer’s market as well. Of most significance, the number of days to sell has risen substantially by 21.8%. It now takes more than twice as long to sell a home than just two years ago, which is currently 145 days.

The average sale price of homes in Pasadena, interestingly, have stayed roughly the same, even gone up a bit in the last three years, although it is down 9.3% over last year to $244,072. This can be contrinbuted to newer homes being sold in newer areas of town and buyers looking outside Corner Brook for homes with bigger yards in the $200,000 to $300,000 price range. Pasadena currently has the highest average home price between the three areas but also the highest number of days to sell.

Deer Lake

New Listings: -4.2%
Sales: -17.5%
Days to Sell: 17.9%
Average Sale Price: 7.3%
* compared to Summer 2017

The number of new listings has remained high while sales have dropped by 17.5% while the number of days on market has increased 17.9% to 79 days. This indicates a strong buyer’s market as we head into the fall and winter months.

January 17, 2018January 17, 2018

Get an Early Start on Selling Your Home

If you’re like most people you probably want to get a few things done before you list your home. Maybe the kitchen or bathroom is outdated or the floors need to be redone. Or maybe all it needs is a little TLC and a fresh coat of paint. However big your project is, getting your home ready for sale starts now.

Of course, not all projects are practical to do right now. With the amount of snow we get here in Newfoundland you’ll probably want to put off doing the shingles or siding until the weather forecast is more in your favour. In the meantime, there are some things you can get started on right away inside the home so you won’t be rushing at the last minute.

But before we get into our list of things to do, let’s talk about the principle of diminishing returns. The Principle of Diminishing Returns states that you will make more money as you invest in your home up to a certain point. After that point you will actually be losing money. For example, if you were to upgrade your bathroom and you decideded to install a $10,000 spa shower you likely aren’t increasing the value of your home by $10,000. Although most home buyers will like the shower, they are not willing to dish out the extra cash for it. Usually a regular tub and shower will suffice.

When it comes to selling your home, simple updates are optimal. It’s best not to go all out, or, as I like to say “update it but don’t complicate it”. With that being said, here are some things you can get started today to get your home ready to sell.

The Kitchen
The focal point of most showings. One of the first things our clients will do when we show them a home is head towards kitchen. It’s where they’ll spend a considerable amount of time and it’s also where they’ll be entertaining friends and family so it makes sense to put some money into upgrades if it looks a little outdated. But not all kitchens need to be renovated. As long as it’s in good shape that’s all that matters, at least when it comes to selling a home. Remember, going overboard with renovations will actually cost you more in the end. Sometimes just updating the appliances makes a world of difference, especially if the fridge looks like it’s from 1985.

The Bathroom
If your bathroom still has that old green or pink bathtub it might be due for an update. As with the kitchen, if you’re looking to make your money back then don’t go all out. Put in a new tub and maybe a new toilet, update the vanity and put down some new flooring down and you’re done! If everything looks to be in good condition maybe just do a few touch ups like redoing the caulking around the tub, some fresh paint, and maybe some new handles on the cabinets and drawers.

Electrical
Is there really old wiring in your home? Not only is this a common concern for many buyers it’s also a common issue with trying to get home insurance, which can cause a damper on the sale of your home. Look at the wiring in the roof of an unfinished room downstairs to see if you have knob and tube wiring. If you do you should contact a certified electrician to assess and possibly update the wiring. Another area to look at is the panel box. breakers are preferred over fuses, although many homes have a fuse box and have no issues unless it is a 60 amp service. These 60 amp panels usually need to be upgraded for insurance purposes.

Plumbing and Heating Systems
Make sure everything is up to date. Get your furnance serviced and check to see if the hot water tank is in good condition. While you’re peeking around, check any exposed pipes to see if there are any potential leaks or if anything looks like it should be replaced.

Floors
Installing new flooring is one thing most home sellers do because it’s relatively cheap and it makes a big difference. Nowadays you can find some pretty nice quality vinyl and laminant flooring for a good price at most hardware stores. If your current floors are in good condition I wouldn’t worry too much about this as people’s tastes differ and a potential buyer might even rip up your new floor to put something else down. But if it looks overdue then it might be a job you should tackle now.

Finishing Touches
It’s the little things that make a big difference. Installing new handles on your cupboard doors and matching them with new door knobs, new sink faucets, replacing cracked faceplates on light swithes and electrical outlets, and fixing up baseboards and door trim will all do wonders. At the very least a fresh coat of paint throughout the house will make it look like a whole new place.

De-clutter and Downsize
Since you’ll be moving, it might be a good time to pack up any items you don’t regularily use and get them out of the way. Use this time to organize and maybe find some things that you can sell in a yardsale or give away. De-cluttering also has the effect of making the home appear to have more space, which is a huge selling point.

Tip
Is your home already in good condition and ready for sale? A good idea might be to get your home pre-inspected by a home inspector. Getting your home inspected before listing it has two benefits. One, it will give you a chance to fix some things you may not be aware of so it doesn’t become an issue later on in a sale where the purchaser will most likely try to renegotiate the price. And two, it gives buyers peace of mind when they are viewing your home because they know exactly what they are getting before they even consider making an offer. This can be the deciding factor if they are trying to decide whether to make an offer on your house or somebody elses’.

Still Need Some Help?
If you’re thinking of selling and not sure what to spend your money on, why not give us a call and one of our team members will stop by and give you a few pointers. We will make sure you spend money on the things that count and that you don’t waste money on things that don’t matter. Best of all it’s at no cost to you. We are here to help.

July 2, 2017

Mortgage Terms Explained

Buying a house can be a bit confusing at times, especially if it’s your first time buying one. It’s even more confusing when big words are thrown at you like “amortization”, and don’t even get me started on compounding interest rates. Hopefully this list of mortgage terms will help you feel more confident when sitting down to discuss lending options with your bank or mortgage broker

Amortization: One of the more confusing words you’ll come across but it’s actually an easy one – it’s the amount of time you will take to pay off the loan. Typically this will be 20 or 25 years.

Term: The amortization (expalined above) is usually divided into several “terms”. At the end of a term you can either pay off the remaining balance of the mortgage without any prepayment penalties (expalined below) or you can renew the loan for another term. For example: John gets a mortgage with an amortization of 20 years and a term of 5 years. At the end of the 5 year term John has the option to pay off his mortgage or renew it for another 15 years with a new 5 year term.

Principal: This is the total outstanding balance of your loan.

Interest: Interest rates on mortgages in Canada are compounded semi-annually. This means the interest rate is applied twice per year.

Open vs Closed Mortgage: An open mortgage allows you to pay off your mortgage or change lenders at any time without incurring a prepayment penalty. A closed mortgage gives you a set payment schedule that you must follow. If you make any lump sum payments before the end of your term you will have to pay a penalty. Interest rates for closed mortgages are lower than for open mortgages and most closed mortgages give you options for making extra payments to avoid penalties.

Fixed Rate vs Variable Rate: A fixed rate means your interest rate stays the same throughout the term of the mortgage. A variable rate (also called a floating rate) means your interest rate as well as your monthly payment will change if the prime lending rate changes. By assuming the risk of fluctuating interest rates and payments you will typically be offered a lower rate than for a fixed rate mortgage.

Prime Rate: The Prime rate is linked to the Bank of Canada’s overnight lending rate, which reflects the rate they charge when they loan funds to other banks; it is tied to global financial markets and monetary policy.

Portability: Because not everyone is happy paying a prepayment penalty, lenders came out with an option that keeps everyone happy – mortgage portability. This allows you to transfer your current mortgage to a new property that you are buying. All the terms of the mortgage typically stay the same. You can take advantage of this feature if your interest rate is lower than current rates. Instead of breaking the mortgage and getting a higher rate you can just “port” your mortgage to the new property.

Conventional vs High-Ratio Mortgages: High-ratio mortgages are when you loan more than 80% of the home’s value (ie. less than 20% down payment). Most mortgages are high-ratio mortgages. If you are putting the minimum 5% down on your home then it is considered a high-ratio mortgage because you are taking out a loan for more than 80% of the homes value. Anything less than 80% of the home’s value (or a down payment of 20% or more) is considered a conventional mortgage.

Pre-Approval: The first step in getting financing is getting a pre-approval. This is a way for you to find out how much you qualify for before you go house shopping. You can also usually lock in the rate for a specified period of time.

June 18, 2017

Government Funding Programs

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.

Down Payment Assistance — Federal Funding Programs

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).