
As of July 2011 the Canada and Ontario governments have assigned $301 million each, which brings the total funds committed to the program after adding other funding sources to $734 million. The program is designed to provide assistance to approximately 20,000 households in Ontario alone. This assistance has been made available to all regions, although it does focus on households with a moderate- to low-income who are currently renting. The purpose of the program is to assist households who are currently renting and have the income to afford a mortgage, but cannot buy a new home because they lack the savings to afford a down payment.
How much you need for a down payment when applying for a mortgage will depend on the price of the property, the type of loan you are eligible for and your income. Most lenders offer two main types of mortgage, 80 percent mortgages and 75 percent mortgage. If your household has an income of $60,000 and you can pay a 10 percent down payment, you can afford a home of up to $166,900, based on general lending requirements. However, if you can afford a 25 percent down payment you can afford up to $205,300. This can mean the difference between been able to buy a home in your neighborhood and having to move to another area to qualify for a mortgage.
Maximum House Price
The maximum house price for eligible down payment loans in the Affordable Housing Program ranges from $408,403 in the Regional Municipality of York, $384,422 in the City of Toronto, to $106,158 in Timiskaming. If your house is more expensive than your region’s maximum price, you will not be eligible. Click here for more information on the maximum prices for each Ontario region.
Maximum Income
The maximum income for the Affordable Housing Program is set at the 60th percentile of your region. This means that at least 60 percent of households must have an income higher than yours. This means incomes vary widely from one region to another. For instance, in the Greater Toronto Area the maximum income is $77,900, while in the Regional Municipality of Niagara it is $70,100.