Nunavut Downpayment Assistance Program
The Nunavut Downpayment Assistance Program (NDAP) assists clients in achieving homeownership through conventional financing means by providing financial assistance to ensure the clients have ten percent of the total house costs to contribute as a down payment.
A personal financial (mortgage equity) contribution by the client, when combined with NDAP, will ensure that clients meet the minimum down payment requirement of conventional mortgage lenders.
NDAP is offered as a forgivable 2nd mortgage over a 10 year period. There is no forgiveness in the first 5 years.
The NHC will provide on a one-time-only basis a contribution in the form of a forgivable loan to subsidize the cost of purchasing an existing home or constructing a new home. Exceptions to the one-time only basis may only be made with the approval of the Corporate Executive Committee.
Sliding Scale Funding
The NDAP contribution is based on 7.5 per cent of the total costs, to a maximum of $30,000. The client’s portion of the down payment must be a minimum of 2.5 per cent of the total costs.
The following table is provided to illustrate examples of NHC’s level of assistance and the clients’ personal financial contribution, based on total costs ranging from $50,000 to $400,000. The exact contributions are to be determined by calculating the percentages of the actual costs.
|Purchase Price||Client 2.5%||NHC 7.5%||Total 10.0%|
- The applicant(s) must be at least 19 years of age.
- This program follows income eligibility limits as set by the Homeownership Program Income Eligibility (HPIE) numbers
- The applicant(s) must not currently own residential property, or have owned residential property in the community in which they are applying for NDAP during the last five (5) years. However, in extenuating circumstances exceptions do apply.
- Neither the applicant nor co-applicant may have received previous assistance from the NHC to buy or build a home within the last 10 years. In extenuating circumstances, and with the approval of the Corporate Executive Committee, this requirement may be waved. (for more details, please see the NDAP guidelines)
- Applicants with rental or mortgage arrears with any Local Housing Organization in Nunavut or with the NHC, or who have otherwise caused a loss to NHC, do not qualify for the program until those arrears or losses are paid in full. However, at the discretion of the Corporate Executive Committee this requirement may be waived, provided that the client(s) agrees in writing to a Repayment of Arrears Schedule
- The applicant(s) must be approved for a mortgage from a Canada Mortgage and Housing Corporation (CMHC) approved lender. The Corporate Executive Committee may, at its discretion, approve alternative financing arrangements upon the submission of appropriate documentation by the applicant(s).
- The applicant(s) must be able to afford to own and operate the home. In addition to a bank’s analysis to determine credit worthiness, the NHC will conduct its own affordability analysis as part of the approval process.