How to Apply

Responsibilities of Purchaser

As a home purchaser, it is your responsibility to ensure that you are aware of your role and responsibilities when buying your first home:

• Home inspection costs
• Closing costs
• Additional down payment resources
• Conditional approvals through process
• Conditions of default (repayment of loan by purchaser)
• Monitoring and reporting over 20-year program period

HOME INSPECTION COSTS

• A purchaser must conduct a home inspection on every home prior to entering into a firm offer of purchase and sale. It is in the best interest of the purchaser to have an inspection completed and to be aware of all of the possible concerns and issues, including ones that may be hidden to the eye, prior to settling on a firm purchase offer price.
• Home inspections should be carried out by a licensed professional. Your real estate agent may be able to assist you in finding a reliable home inspector in your area, or consult the Yellow Pages to find a licensed inspector.
• On average, a home inspection usually ranges in price between $200 to $400. This cost is the sole responsibility of the purchaser.

CLOSING COSTS

• Purchasers (program participants) under the Affordable Home Ownership Program should be aware of, and be able to pay for, any additional closing costs incurred during the purchase of a home.
• Closing costs include lawyer’s fees, land transfer costs, title search and changes, possible land and/or municipal property tax payments, and any other unanticipated costs. These are all the sole financial responsibility of the purchaser. It is important that the purchaser have extra money available for these costs.

ADDITIONAL DOWN PAYMENT RESOURCES

• More is always better when it comes to a down payment. Any amount you can put down up front will decrease the amount of your mortgage carrying costs. If you are able to contribute additional funds to the down payment loan assistance available through this program it would help to make the principal amount of your mortgage lower, and give you an opportunity to pay off your mortgage sooner.
• Talk to your lender about increasing your down payment amount if this is a viable option for you.

CONDITIONAL APPROVALS THROUGH PROCESS

• The conditional approval letter given to eligible purchasers by the Region of Peel during the approval process is a conditional approval only until final mortgage insurance under-writing review is conducted and approved.

If denial by the lender is received at the final under-writing stage of the home purchasing process, the Region of Peel will not be responsible for any costs, losses or liabilities that are or may be incurred by the individual purchaser. The purchaser would no longer be eligible for participation in the Home in Peel Affordable Ownership Program, and as a result, would not receive the down payment loan assistance.

CONDITIONS OF DEFAULT (REPAYMENT OF LOAN BY PURCHASER)

• If a home that is purchased under this program is sold within the first 20 years of ownership by the purchaser then the down payment loan is to be repaid to the Region of Peel plus 5% of the appreciation, unless otherwise noted under a different condition of default.
• Other conditions of default include:
• Death of purchaser(s): this constitutes a default should it occur within the first 20 years of ownership.
• Bankruptcy/insolvency: the lack of financial resources and legal judgement of bankruptcy. The home would then be sold and the proceeds would be distributed among the creditors who are owed.
• Misrepresentation or misuse of the down payment loan: should any purchaser distort, falsify, represent incorrectly, improperly or use the down payment loan assistance for any purpose other than as a portion of the down payment to buy a home under this program, the purchaser would become ineligible to continue in program and the full amount of the loan plus a portion of interest would be due back to the Region of Peel immediately.
• Writ of Execution: should any purchaser receive a Writ of Execution on the home they will become ineligible to continue in the program and the full amount of the loan plus a portion of interest would be due back to the Region of Peel immediately. (A Writ of Execution is defined as a court order that attempts to enforce a judgement that has been granted to a plaintiff by authorizing a sheriff to carry it out).
• Any wilful perversion of facts: that if discovered, in order to obtain a loan under this program, will result in the ineligibility of the purchaser and an end to their participation in this program. Repayment of the loan assistance plus interest would be due back to the Region of Peel immediately.

MONITORING AND REPORTING OVER 20-YEAR PROGRAM PERIOD

• Program participants (purchasers) will be required to complete annual review packages for the Region of Peel as part of the program requirements under the Home in Peel Affordable Ownership Program during the first 20-year period of ownership.
  

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All purchaser responsibilities are detailed in the binding Affordable Ownership Program loan agreement that every purchaser will sign with the Region of Peel prior to being eligible and receiving final approval for program participation.
If you have any questions or concerns, please consult your lawyer, or call the Region of Peel Home in Peel representative at 905-453-1300 ext. 3589.

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