Toronto’s Affordable Condo Ownership Program
- Overview: Toronto is offering public housing residents a unique chance to own new condos with no down payment. Yet, uptake is low, with only three households approved for six homes since the program began over seven months ago.
- Program Details:
- Condos require no down payment.
- Monthly costs are adjusted to about one-third of household income.
- Targeted at low-income residents, it aims to provide ownership and long-term wealth-building.
- Key Requirements:
- Minimum household income of $63,000.
- Full-time employment with three years of Canadian work history.
- Good credit and reasonable debt levels, barring any bankruptcies.
- Challenges:
- Income Barrier: Many low-income residents earn less than the $63,000 minimum, making eligibility tough.
- Equity Limits: Condos must be sold back within 25 years at a set rate, with only 2% annual appreciation allowed, deterring those seeking long-term financial gains.
- Expanded Eligibility: Initially limited to local public housing tenants, the program has been opened citywide to attract more applicants.
- Resident Perspectives:
- Residents are reluctant due to limited equity growth, lack of financial return, and conditions that restrict typical homeownership benefits.
- For some, the comfort of their subsidized housing and existing neighborhood connections outweighs the appeal of ownership under current terms.
- Impact & Future: Habitat for Humanity, running the program, hopes city reviews will increase support for affordable ownership. While it opens pathways out of subsidized housing, the program’s design may need adjustments to better serve low-income families.
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