Province launches Rent-to-Own program

More Island residents will be able to reach their home ownership goals through a new provincial housing support program. 

The PEI Rent-to-Own program gives eligible participants the opportunity to purchase their home without the immediate need for a down payment or a pre-approved mortgage. 

“A tight housing market and increases in construction cost have made housing prices out of reach for many Islanders. We want to help Islanders get a foot in the door towards home ownership as we continue to find ways to help Islanders who wish to move out of the rental market and into homeownership.”

- Housing, Land and Communities Minister Rob Lantz

To be eligible for the program, applicants must:

• not be a homeowner currently; 
• have a household income of $65,000 per year or less, for individuals, or less than $100,000 for a dual income household;
• demonstrate the ability to meet monthly payments.

“We know that the journey towards home ownership is out of grasp for some of our residents because of financial pressures like large down payments or mortgage qualification,” said Minister of Economic Development, Innovation and Trade Gilles Arsenault. “The Rent-To-Own program gives people more time to save and build equity, so they are better positioned to reach their home ownership goals.”

Finance PEI will purchase the eligible property and enter into a rent-to-own agreement with the program participant on a five-year, five per cent interest rate over 25 years. At any point during the five-year loan period, applicants in good standing can purchase the property from Finance PEI with an approved mortgage and apply 40 per cent of the interest paid as part of their down payment.

Media contacts:
April Gallant
Department of Housing, Land and Communities
aldgallant@gov.pe.ca 

Vicki Tse
Department of Economic Development, Innovation and Trade
vickitse@gov.pe.ca

Backgrounder:

Eligible properties must:

• not exceed $350,000 excluding taxes and legal fees (properties requiring structural repair will be considered for purchase if the total loan value does not exceed the program limit of $350,000);
• be owner occupied and be the applicant’s full year-round primary residence (commercial, recreational and cottage properties are not eligible); 
• be an existing property on its own individual property identification number (PID).