ARCH partners with Federal Government to Support First-Time Homebuyers

Arch Partners With Federal Government to Support Affordable Homeownership

by with No Comment Company News

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.

Quotes:

“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

Associated links:

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, media@cmhc-schl.gc.ca

Related Links

www.cmhc-schl.gc.ca

4 direct benefits you gain from using ARCH for the down payment on your first home

4 direct benefits you get by using ARCH

by Mortgage TipsReal Estate Tips

With the ever-rising housing costs and the regulated requirements around purchasing a home in Canada, the dream of home ownership seems like it’s becoming a [very] one for nearly every first-time homebuyer.

While most Canadians can actually afford the monthly payments required to take on a mortgage, they lack one of the biggest components of the entire home buying process:

The required down payment.

What once used to be considered a normal thing of having the full down payment at the time of purchase, has now become a huge financial hurdle – and certainly the biggest one when it comes to purchasing that first home of yours.

Let’s put it this way…

Did you know that nearly 50% of all renters in Canada have less than a total of $5,000 to their name?

That’s hardly enough to cover just the closing costs alone.

To say it’s a massive problem is a bit of an understatement.

Even more so, the traditional ways of coming up with a down payment (savings, loans, gifts) aren’t quite as “accessible” as they once used to be.

And that’s exactly why we’ve created a new way to help first-time homebuyers just like yourself to come up with the required (and full) down payment.

Having the full down payment will multiply your benefits as a new home owner. Here are 4 direct benefits you’ll gain:

1. Get into the housing market quicker

With having access to the full amount for a required down payment, it’s [finally] time to start feeling better about the homebuying process.

As long as you’ve had those conversations with your mortgage broker and even real-estate agent, you’re ready to make the move into the housing market.

There’s no more waiting until you’ve saved at least 5% for the down payment, because you’ll have 20%. Which means you won’t need to worry about how much the marketing will increase before you’re ready to buy, because you’ll be ready to buy.

There’s no time like the present, and we’re here to help guide you.

2. Stop paying someone else’s mortgage, start building your equity

It’s finally time to stop paying rent and funding someone’s mortgage on a property that will continue to go up in value over the course of even just 5 years.

Instead, it’s time to focus on paying off your mortgage and start building your equity so that you can not only feel good about owning your home, but so that you can start building your future wealth.

3. Lower your monthly payments

 Our goal isn’t to help you out with a small portion of the down payment, it’s to make sure that you’re putting down 20% of the required down payment.

In other words, our job is to make sure that you have the full down payment.

By having the full amount to put down towards your future home, the total amount of the mortgage you’ll take on significantly decreases.

Meaning what exactly?

Ultimately, that means you’ll be paying considerably less on a monthly basis, and you’ll even avoid having to pay any sort of mortgage loan insurance that’s required to pay for anything less than a down payment of 20%. Which means, you guessed it, your monthly payments will go down even more.

Here’s the tough part…

Deciding what you’ll do with that extra money you’ll have every month. Are you focused on building your investments, saving for annual vacations, or paying off your mortgage quicker?

4. Avoid paying unnecessary interest

One of the best benefits is that you’ll pay considerably less in interest overtime.

For starters, you’re not taking on any sort of additional monthly loans to help fund your down payment. With ARCH, you pay back the initial investment when you later sell your home.

That means you won’t be taking on any monthly payments (or interest) other than what’s tied to your mortgage.

Additionally, by being able to take on a smaller mortgage, you’ll immediately decrease the total amount owing on your home, your monthly payments, and the interest you’re paying on that loan.

It’s like a win-win-win situation… but possibly even better.

Getting into your first home

There’s no argument that saving up for the down payment is one of the major challenges most Canadians are struggling with when it comes to purchasing their first home.

But it doesn’t have to be, not anymore.

By having access to the full down payment through ARCH Foundations, not only will we help you when it comes to the down payment portion, you’ll also get the rest of the benefits that come along with putting up the full amount.

Finally, something to feel better about when it comes to purchasing your first home.