City of St. Thomas

The St. Thomas-Elgin Affordable Homeownership Program (AHP) is a partnership between the Government of Canada, the Province of Ontario and the City of St. Thomas through the Canada-Ontario Affordable Housing Program. 

The program provides financial assistance to qualified low-to-moderate income households in the form of an interest-free 20-year forgivable loan.   Funding is limited and is provided on a first come first serve basis to eligible applicants. Only applicants who have received a Conditional Letter of Commitment will be eligible to receive funding.  Approved applicants will have 90 days to purchase a home and submit the completed Affordable Homeownership Package.  

Eligibility Criteria
To be eligible for down payment assistance, applicants must meet the following criteria:

• You must be at least 18 years old.

•  You must be a legal resident of Canada

• You must be a first-time home buyer.

• You must qualify to obtain a mortgage.

• You must not currently own a home or a residential property, in whole or in part, including recreation or cottage property.

• Cannot be living in a spousal relationship with a person who owns, in whole or in part, a residential property including recreation or cottage property.

• You must be a renter residing in St Thomas or Elgin County (verification required). 

• You agree not to lease the home and to occupy it as your primary residence for the entire duration of the loan. Failure to do so will be considered a default under the terms of the loan agreement (see below “Events of Default”).

• You must not owe arrears to a Social Housing Provider.

• Eligible purchasers receiving down payment assistance must sign a loan agreement with the City of St. Thomas and provide all requested documentation.

Maximum Assistance Levels

• The maximum amount of down payment assistance is 5% of the purchase price up to a maximum of $25,000 and will be provided at the time of the closing date.

• Your total household income before deductions must be less than $113,900 for individuals and $135,000 for families consisting of two or more people. 

• Your total household assets must be below $50,000

Eligible Properties
Approved applicants may select a unit of their choice if it meets the program criteria and requirements developed by the City of St. Thomas.

The maximum Market Home Value is $500,000.

The home to be purchased must be in the City of St. Thomas or in Elgin County. Vacant lots are not eligible. Homes may be new units that include a new home warranty or resale homes and can be detached, semi-detached, town (condo and freehold), stacked homes or row houses, apartment condo.  A home inspection must be undertaken and paid for by the purchaser.

Events of Default
The loan is in default if any of the following events occur:

• If the home is sold, rented or leased within the 20-year forgivable loan period.

• The home is no longer your principal and sole residence.

• Ownership is transferred to another person.

• You become bankrupt or insolvent and are no longer able to pay your mortgage.

• You transfer or lease the home to someone else. 

• You become deceased.

In the event of default, you must pay back the principal amount of the loan, plus 5% of the increase in value of your home (Capital Gains). 

A homeowner may agree to voluntarily repay the down payment assistance at any time but will be required to pay the applicable percentage of the realized Capital Gains. 

**If the home is sold after 20 years, the loan is forgiven.