Press release was originally published via Cision Newswire.
HAMILTON, ON, Nov. 19, 2021 /CNW/ – Everyone in Canada deserves to have a safe and affordable place to call home. That is why the Government of Canada introduced the Shared Equity Mortgage Providers (SEMP) Fund, an innovative tool to assist providers of shared equity mortgages in helping eligible Canadians achieve affordable homeownership.
Today, the Honourable Ahmed Hussen, Minister of Housing and Diversity and Inclusion, along with Chad Collins, Member of Parliament for Hamilton East—Stoney Creek, announced details of a $1 million federal investment in the form of a repayable loan to Arch Canada, to fund shared equity mortgages that they will be providing directly to first time homebuyers in the Golden Horseshoe region of Ontario with a focus on the city of Hamilton.
Shared equity mortgages allow eligible homebuyers to reduce their monthly mortgage payment without increasing the amount they must save for a down payment. The Arch Canada shared equity mortgage is a co-investment with the homebuyer, is not interest bearing, requires no monthly payment and is repaid along with a percentage of property appreciation or depreciation when the property is sold.
Arch Canada Holdings Inc. is a recently established company that supports first-time homebuyers so they can finally realize their dream of homeownership. These buyers typically have solid, stable cash flow but are unable to save the required down payment to enter higher-priced, appreciating markets. Arch Canada is positioned to deploy $1 million in SEMP funding towards their project in the Golden Horseshoe Region of Ontario and Hamilton.
Launched in 2019, the SEMP Fund is a $100-million lending fund, administered by CMHC, that helps support existing SEMPs, attracts new providers of shared equity mortgages and encourages additional housing supply.
“Every Canadian deserves a safe and affordable place to call home. As our Government continues to make big investments in building new affordable homes across this country, we also need to find new ways to help more people buy homes today. That’s what this fund is all about – an innovative approach that can take some of the mortgage burden off homeowners and help more hard-working families find and afford a good place to call home. This is one of the ways our National Housing Strategy continues to ensure no one is left behind.” – The Honourable Ahmed Hussen, Minister of Housing and Diversity and Inclusion
“Affordable homeownership is a pressing concern for many young Canadians. Access to funding for SEMPs will address some of the housing supply shortages in Canada while making homeownership more affordable for Canadians. We are pleased to support Arch Canada who is helping hard-working families reach their dream of homeownership right here in Hamilton.” – Chad Collins, Member of Parliament for Hamilton East—Stoney Creek
“We are happy that the Federal Government has seen the importance of our co-investment program in helping first-time homebuyers gain that extra bit of breathing space that is so drastically needed when looking to enter todays home ownership market. This Federal investment will be an important component as we strive to help Canadians realize their dream of home ownership”. – Stephen Benson, CEO, Arch Canada
As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers unbiased housing research and advice to all levels of Canadian government, consumers and the housing industry. CMHC’s aim is that by 2030, everyone in Canada has a home they can afford, and that meets their needs.
SOURCE Canada Mortgage and Housing Corporation
For further information: Media contacts: Mikaela Harrison, Press Secretary, Office of the Minister of Housing and Diversity and Inclusion, Mikaela.Harrison@hrsdc-rhdcc.gc.ca; Media Relations: Canada Mortgage and Housing Corporation, firstname.lastname@example.org