Yorkton Council unanimously supported the Headstart on a Home Policy to provide $5,000 per door to qualified homebuyers for new entry level single-family homes created through the Headstart on a Home program to be repaid from taxes on an annual basis and secured by a second mortgage on the property be adopted.
"The homeowner would also have to occupy the home. This initiative is not designed for purchasers to rent entry level single-family homes to others. It is really trying to encourage home ownership with this policy," explained Gord Shaw, Director of Planning & Engineering with the City.
The municipality will register a second mortgage on the property for the $5,000. This second mortgage will be re-paid by the homeowner through property taxes. The term of the mortgage would depend on how much the taxes were on the property. If the taxes were $800/annually, the term would be 6.25 years.
If the owner sells before complete payments have been made on the $5,000, then it would have to be fully repaid before the city's mortgage is discharged from the title.
Administration believes that this program will enable first time purchasers of homes in the entry level stage of the housing continuum. Qualified homebuyers will have the means to finance the purchase of a new single family home in this community created through the Headstart on a Home program, detailed an Administration report circulated at the regular meeting of Yorkton Council Monday.
"The financial impact of this policy will obviously be limited to the number of projects approved through the Headstart on a Home program," noted Shaw.
This program is limited to five years and is for all of Saskatchewan.
