Building entry-level homes is the goal of Head Start on a Home, a project initiated by the Government of Saskatchewan to encourage the development of new, lower cost projects in the province. There was recently an open house to showcase the homes and build interest in the development.
Wanda Hunchak, Vice President of Westcap Management, explains that the government provides construction financing for new homes, which are entry level housing. She explains that the program was a response to an increase in real estate prices across the province.
“We had just come off a market where we had saw the average price of a home increase by thirty per cent, so it was really tough for people to get into home ownership. The program was launched to make sure we got entry level housing on the market faster, and more of it on the market than before.”
In the province of Saskatchewan, $400 million has been spent to construct 2,200 homes across the province.
The program is run in partnership with Saskatchewan Credit Unions, which also offer down payment assistance in the form of a five year loan financed at prime, called the HeadStart Home Equity Builder Program.
In Yorkton, there is also assistance available for people who are looking to get into a HeadStart home and get out of the rental market. There is a non-repayable equity grant of $5,000 towards a down payment on a Head Start home. To qualify, a household must have an income of below or equal to $78,400. They must also have been renting in Yorkton for at least six months, and be a first time home buyer. The goal of the program is to get people out of rental units and into home ownership.
“Often that’s the biggest hurdle for people. The mortgage cost of owning a home and the rental cost of renting a home are usually very similar. But it’s that five per cent down payment that is a hurdle for people.”
While the Head Start program is operated in partnership with the Saskatchewan Credit Unions, Hunchak emphasizes that people are free to finance through any financial institution. She also notes that they can go through any real estate agent as well, and in that way it is like buying any other home on the market. The HeadStart Home Equity Builder program is only available through the Credit Union, however.
Head Start homes in Yorkton are in approximately in the $230,000 range. Hunchak says the advantage is that these are new homes at that price.
“Here in the Yorkton market there isn’t a lot of housing in that entry level market. If people are looking to become homeowners there are homes that were constructed maybe 20-30 years ago, so you’re often faced with renovation costs or hidden costs in things like furnaces or shingles. This is brand new home ownership with a home warranty.”
