The Saskatchewan Party posted more platform promises during the past week, saying they will allow post-secondary graduates to use up to $10,000 of their Graduate Retention Program (GRP) tax credits toward the down payment on their first home in Saskatchewan.
The promise is consistent with the party’s pledge to make Saskatchewan the best place in Canada to go to school, find a job, buy a home and start a family, the party said in a media release.
Beginning May 1, GRP recipients can apply to the Saskatchewan Housing Corporation (SHC) to access up to $10,000 in unused GRP tax credits. A first-time home buyer is defined as someone who has not owned a home in the current year or in any of the previous four years.
Once eligibility has been verified, SHC will advance up to $10,000 per applicant in the form of an interest free loan, which will be forgiven, provided they continue to own the home for a period of time. People purchasing their first home together (for example, a married couple) can pool their credits toward a down payment to a maximum of $10,000 per person. The property can be a single family home, a semi-detached house, a townhouse, mobile home, condominium or an apartment.
The term of the loan will be four years or the remaining period of GRP eligibility, whichever is less. If the graduate maintains ownership of the home for the entire loan period, the loan will not have to be repaid.
First Home Plan beneficiaries who sell their home but remain in Saskatchewan and buy another home, will be able to transfer the First Home Plan down payment to their new home.
GRP First Home Plan beneficiaries will be required to forgo the next $10,000 of eligibility for non-refundable GRP tax credits. They will then be entitled to resume using their GRP benefits to reduce their provincial income tax as usual.
Graduates who use the First Home Plan won’t be eligible for the Saskatchewan First Time Homebuyers Tax Credit. However, the First Time Homebuyers Tax Credit will continue to remain in effect for people who aren’t eligible for GRP benefits or don’t wish to access the GRP First Home option.
The party said the anticipated cost to initiate this program will amount to just under $1 million in the first year (2016-17) and would escalate to $1.8 million in the next year and then increase to $2.7 million in year three before topping out at $3.6 million in the fourth year (2019-20).
The Sask. Party also announced they would increase the Advantage Scholarship from the current rate of $500 per year to $750, once the province’s finances have improved.
Every graduating Saskatchewan high school student who chooses to go on to post-secondary education within the province is eligible to have their tuition reduced by $500 per year for up to four years under this scholarship program, saving the student up to $2,000. If it were to be increased, that total saving would amount to $3,000.
The Advantage Scholarship program was introduced in 2011 during the election campaign, and has provided over $13 million to more than 16,000 students. The benefits are administered by the province’s post-secondary institutions and automatically reduce the tuition payable by a student.
