First Home Plan - Graduate Retention Program
Using the post secondary graduate tax rebate in advance for the use toward down payment. The best down payment program to hit Saskatchewan in a while.
Recent post secondary graduates will be thinking about the Graduate Retention Program at this time of year as they file their income tax.
I have a great process and multiple lender partners in place to get approvals and make this an easy way to start building equity in a first home.
Here are the details of the Program:
The First Home plan is being administered through Saskatchewan Housing Corporation.
Through the plan, individuals in the Graduate Retention Program (GRP) may be eligible for an interest-free loan of up to $10,000 to use toward the down payment on the first home they purchase in Saskatchewan.
The Graduate Retention Plan was already a program in place as a tax break for graduates who live and work in Saskatchewan. Eligible post secondary Programs 1 – 4 years long qualified for up to 20k in tax breaks over a multi year period.
This First Home Plan leaves the existing Graduate Retention Program in place, and allows this interest free loan. The home buyer still files their taxes and receives their tax rebate each year, but they take their rebate and use it to pay back the loan.
Different people will be in different stages of their Graduate Retention program. It is important to go to the link above to find out how much you/they are eligible for.
You/They will also need a pre-approval letter from a broker / bank in order to be issued their First Home Plan approval. (Ahem. Ahem.) :)
The money from the program does not come directly to the home buyer at any time in the process. Once there is an unconditional purchase of a home, the Saskatchewan Housing Corporation will release the funds to the real estate lawyer.
This program can be coupled with any other source of down payment.
If there are two applicants that have access to this Grad Retention Program, they can use up to $20,000.
One key on the lending side is that some lenders put a loan repayment in the clients debt service ratio for qualifying (and charge the higher 4.5% CMHC premium for borrowed down payments) and some lenders do not. It is important to try put buyers in the later, as it saves money and helps how much money they can qualify for. I will always put home buyers into the best overall option for each unique home buyer.
Please contact me if you have any questions or if you want any more info on the program.
Have a great day!