TORONTO--(BUSINESS WIRE)--Options for Homes is delighted with the steps that Budget 2019 takes to address Canada’s housing affordability crisis.
“The Federal budget takes concrete steps to address Canada’s housing affordability problem and will help to markedly improve access to home ownership for middle income earners,” said Heather Tremain, CEO of Options for Homes. “The middle class has been increasingly priced out of the housing market, especially in the Greater Toronto and Greater Vancouver areas. The programs outlined in today’s budget will help make the dream of home ownership a reality for many working Canadians.”
While Options believes there is still more to be done to tackle Canada’s affordability crisis, Budget 2019 introduced policy measures that will help to alleviate some of the most pressing problems:
- Introducing the First-Time Home Buyer Incentive. Through the First-Time Home Buyer Incentive, Canada Mortgage and Housing Corporation (CMHC) will provide up to $1.25 billion over three years for eligible homebuyers by sharing in the cost of a mortgage.
- Increasing the amount of money that can be borrowed from RRSP accounts to use for a down payment to $35,000 from $25,000.
- Allowing divorced individuals to access the Home Buyers Plan.
- Establishing a $100 million fund to assist current providers of shared equity mortgages, like Options for Homes, to scale up their businesses and deliver additional affordable housing to Canadians.
Options for Homes is a Canadian pioneer of shared equity mortgages, helping middle income Canadians realize their dreams of home ownership for more than 25 years, with more than 3,000 completed residential units and more than 2,100 in its development pipeline. Options helps Canadians who can generally afford the carrying costs of a home, but not the large lump sum required for a down payment, buy high-quality condo apartments and townhomes.
“We are very happy with the measures announced today and the opportunity they will create to meet the growing demand for affordable housing,” continued Ms. Tremain. “The budget strikes a fair balance between creating new home ownership opportunities while maintaining a stable housing sector and economy.”
As an example of the shared equity model, Options for Homes is currently offering down payment loans of up to $115,000 for a three-bedroom condo in its development on Toronto’s Humber River, reducing the required annual household income to qualify for a mortgage by as much as $27,000. The Humber includes 40 three-bedroom units, far exceeding the city’s requirements for larger units, as part of its commitment to middle class families.
About Options for Homes
Options for Homes is Canada’s largest developer working exclusively on making home ownership more affordable. Operating for more than 25 years without government funding, Options is a social enterprise focused on helping people who can generally afford the carrying costs of home ownership but don’t have the resources to save for a large down payment through its unique funding model. Options works with Deltera, the construction arm of Tridel, to build high-quality condo apartments and townhomes. Options is currently selling 3-bedroom units in The Humber, a development on the Humber River in Toronto’s west end. For more information, visit www.optionsforhomes.ca.