Yukon introduces new program to assist first-time homebuyers with down payments, covering up to 50% of costs

Yukon’s government is introducing a program aimed at first-time homebuyers in the territory. Eligible residents will receive low-interest loans to assist with down payments.

The Yukoner First Home Program will provide qualified homebuyers loans covering up to half of their down payments, with the option to defer repayment until their mortgage is refinanced or paid off.

Premier Ranj Pillai explained that the program bridges the gap between a first-time homebuyer’s savings and the high down payment requirement, especially for those also paying rent on their current residence.

To qualify for the loan, applicants must be first-time buyers with mortgage pre-approval and enough funds to cover at least half of the down payment plus closing costs.

Specific criteria apply to eligible properties, including a purchase price below the maximum average sale price in Whitehorse for that type of residential property.

The loan amount cannot exceed five percent of the home’s purchase price, and the property must remain the buyer’s primary residence throughout the mortgage term.

“Saving for a down payment while renting can be challenging,” stated Pillai. “This new initiative from our government aims to support first-time homebuyers.

“The program will empower more Yukon residents to enter homeownership, fostering stronger communities and a more robust economy for those looking to settle, work, and thrive in the Yukon.”

The loan offered by the Yukon government features a fixed interest rate of 2.5 percent compounded annually.

A budget of $1 million has been allocated for the loan program, with a review planned after one year to assess its effectiveness in meeting the needs of first-time homebuyers in Yukon.