Home Ownership Program
Provides financial assistance to low and modest income families to help them buy or build a modest first home.
Families or individuals with total household incomes below $40,000, and who can obtain private financing such that when combined with our funding would result in the total acquisition/construction of the unit.
You must also:
- Be a first-time home owner or be living in a substandard housing unit.
- Be a resident of New Brunswick and have been living here for at least one year.
- Have a good credit rating and meet all financial institution lending requirements for obtaining a first mortgage. Applicants are not required to have a downpayment.
- Any type of modest housing which qualifies for a 25-year conventional mortgage, or a 20-year mortgage in the case of a manufactured home, may be eligible.
If purchasing an existing unit:
- The department will provide assistance in the form of a repayable loan for 40% of the purchase price of the unit.
- Eligible applicants must meet all lending requirements of their financial institution (bank, credit union, caisse populaire, trust company).
If building a house:
- The department will provide basic assistance in the form of a repayable loan to a maximum of $75,000. The Department's financial contribution is not to exceed 50% of the total house costs. The applicant would have to provide proof of private financing of a sufficient amount that when combined with our assistance would ensure completion of the house. The Total Debt Service Ratio for new construction loans should not exceed 42%.
- Whether you are purchasing or building a house, the loan will be repaid at 0% interest for those households with incomes less than $30,000. For each $1,000 of adjusted income above $30,000, the interest rate will increase by 0.5% until it equals the provincial borrowing rate.
- Loans will be amortized over a period not to exceed 25 years, and will be subject to terms of one year.
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