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Frequently Asked Questions

For Existing Program Home Owners

 

If I sell my house during the 20-year period, am I required to pay back the loan?

Yes. Should you as the purchaser not remain in the home as your sole and principal residence for the full 20 year period following your purchase date then this is considered a default under the Loan Agreement.

If your unit is sold above the original purchase price, you must pay back the original loan amount as well as a percentage of the realized capital gains proportionate to the down payment loan received.

See sample repayment scenarios here

How long do I have to live in my home for the down payment loan assistance to be forgiven?

The purchaser must remain in the home for 20 years after purchase without any default, which includes that the home remains the sole and principal residence of the purchaser.

Will I be required to complete on-going documentation for the Region of Peel?

The Region of Peel reserves the right to contact program participants during the 20 year affordability period.

If I sell my home how do I calculate what I owe to the Region of Peel?

It depends on the language in your Loan Agreement and the year you purchased your property.

If you sell your home within the 20 year period, you will be required to repay to The Regional Municipality of Peel the amount of the Loan and a percentage of the appreciation in home value.

How do I repay my loan to the Region of Peel if I have sold my home?

Once you have sold your home and your Agreement of Purchase and Sale is firm, your lawyer should contact the Region of Peel's legal department to request a discharge statement. The Region's legal staff will prepare the discharge statement (which outlines the amount owing to the Region of Peel) and will send it to your lawyer. Please contact the Program Administrator at 905-791-7800 ext. 3589 for further details.

Can I repay my loan without selling my property?

Yes, a homeowner may repay the Loan at any time during the term of the Loan Agreement. The original loan, plus a percentage of the appreciation (determined by the Municipal Property Tax Assessment of the home) must be paid in full; partial payments are not permitted. If you wish to remain living in your property, but wish to repay your loan, please contact the Program Administrator at 905-791-7800 ext. 3589.

Can I rent out a portion of my home?

Yes, as long as the property remains in your ownership and continues to be your primary residence.

If you are located in Mississauga and you are considering renting out your basement, please visit the following website for building code regulations and licences:
http://www.mississauga.ca/portal/residents/housingchoicessecondunits

For more information on secondary units in Brampton, please visit: http://www.brampton.ca/en/residents/By-Law-Enforecement/Pages/Basement-Apartments.aspx

What happens if I want to refinance my mortgage?

Some mortgage lenders offer customers refinancing options. Refinancing may involve changing the terms or your original mortgage agreement.

If you would like to refinance your home, your lawyer will need to contact Region of Peel legal staff. Legal staff will send a letter outlining the requirements needed for the refinancing of your property.

Can I register an additional mortgage on my property?

Yes, you can but this mortgage will be registered in third (3rd) position. The mortgage in favour of The Regional Municipality of Peel must remain registered in second (2nd) position.

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