Hamilton Down Payment Assistance Program: Too Good to be True? We Don't Think So!

   We recently learned about a program offered through the City of Hamilton with support from both provincial and federal governments that is getting a lot of attention: the Hamilton Down Payment Assistance Program. On April 17th, 2012, it was announced that the government will be offering up to $25,000.00 per household as a down payment for a property purchase in the City of Hamilton for qualified buyers. This is a forgivable loan, meaning that there are certain conditions that allow for the loan to not be paid back at all. This could be an incredible help for citizens of Hamilton who would like to be homeowners yet do not have enough money saved for a down payment. Because no interest or monthly payments are required on this forgivable loan amount, it also reduces month-to-month financial stress and anxiety. We have researched this Homeownership Program, and think it is a great incentive for qualified individuals. So, do you qualify? Read on to find out!
-You must be over the age of 18, do not currently own a home or property and be a legal resident of Canada. You must also intend to have this home as your one and only residence.
-You must have a combined total maximum gross income of all members of the household under $65,000.00 annually.

   The Homeownership Program offers financial assistance as a down payment up to $25,000.00 to help in purchasing a home at the purchase price of up to $250,000.00. These funds provide an interest-free and payment-free loan, but some conditions apply:
-The home must be purchased within the City of Hamilton.
-The loan must be repaid in full if sold within 20 years.
-If the home is sold after 20 years, the down payment assistance is considered a forgivable loan and no repayment or capital appreciation repayment is required.
-The forgivable loan does not have to be repaid if the home is sold for less than the original price, the transaction is at arm’s length, and the program is satisfied that the sale is at fair market value.

   Too often, things that seem too good to be true usually are. So, what’s the catch? In all of our research, we have actually found this to be an excellent program with legitimate intentions and would encourage qualified buyers to apply. However, keep in mind that this program is no longer offered once provincial funding runs out…so timing is sensitive! You will need to gather certain documents such as photo identification, copies of rent receipts, proof of income and tax assessment, proof of assets and mortgage pre-approval and then download the application form from the City of Hamilton Website (located below) and start the process. Then, start looking for your house (that’s where we can help!) and wait to hear if you are approved for conditional (based on the price of the house) funding. This could be a great way to own a home sooner than you expected, and a fantastic way to turn your rental payments into equity in a home you can call your own.

All of the information above was retrieved from the City of Hamilton website. For more information and details, please visit:


Good luck!

Harold Pope

Harold Pope

Sales Representative
CENTURY 21 New Age Realty Inc., Brokerage*
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