The Mortgage Graduation Program (MGP) is an innovative program to help first-time homebuyers in Ontario transition from renting to homeownership. It exists to make it easier for first-time homebuyers to afford their first home by overcoming the hurdle of coming up with a large enough down payment.
How does the program work?
The program provides a 10% down payment to eligible first-time homebuyers on the home purchase price up to a maximum of $40,000.
Program eligibility criteria are as follows:
- must have a household income of $90,000 or less
- good credit score
- and receive a mortgage pre-approval from a qualified lender
On approval, you must sign a Mortgage Graduation Program Loan Agreement which outlines the loan terms, including the repayment terms and conditions.
MGP Repayment
This type of mortgage loan is interest-free and must be repaid over 15 years. Repayment is monthly and will begin on the home purchase date. The monthly payment amount will depend on the size of the loan and current interest rates. These payments are made directly to the Ontario government, which will hold the loan until it has been repaid in full.
If a borrower decides to sell the home before the loan is repaid, they must pay off the outstanding loan balance.
The Benefits of the MGP
- help first-time homebuyers by providing down payment funds
- interest-free (no additional fees or charges)
- flexible repayment terms
The Mortgage Graduation Program really is a beautiful thing.
- It is a product from B-Lending mortgage lenders
- Upon renewal, in a 1 to a 3-year term, the B lender will review your file – see the 3 factors of your approval
- The review process allows you to renew into their Triple-A lending side. No legal costs.
