Louis Riel Capital Corporation

First Time Home Purchase Program

This Investment in a Housing program for Métis Citizens in Manitoba will provide funding by way of a grant for the purchase of affordable housing for first time home buyers.

Key Objectives:

Improve access to affordable housing that is safe, sound, suitable, and sustainable for Métis households across Manitoba by:

Providing increased opportunities for Métis citizens in Manitoba, to become home owners where they may not otherwise have this opportunity. The First Time Home Purchase Program (FTHPP) is designed to help Métis citizens overcome the challenge of trying to save sufficient funds that financial institutions require for a down payment to purchase a home which will be their principle residence.
Providing funding for down payments on the purchase of a home to a maximum of 5% of the purchase price up to $18,000 plus purchase closing costs of 1.5% of the purchase price up to a cap of $2,500 to address Métis housing needs in the Province of Manitoba.

The purpose of the MMF FTHPP is to address housing needs, priorities and challenges of Métis people living in rural and urban areas across the Province and to make home ownership a reality for Métis Citizens that have never owned a home before.

Eligibility:

(a) Applicant(s) residing in Manitoba for a minimum of six months;

Must provide proof of Métis citizenship with their application; ie. MMF Métis Citizenship Card or a letter from the MMF CRO department confirming the applicant's Métis Citizenship Card is in the process of being issued.
Must be 18 years of age or older.
Must be able to qualify for and obtain a mortgage from a mainstream or known financial institution. LRCC or the MMF reserves the right to review the terms and conditions of any first place mortgage financing.
Priority will be given to those who are currently residing in social housing, and families escaping situations of abuse or violence.
The forgivable loan amount must be registered on the title in second position at the applicants cost.
The home being purchased must be for the applicant's primary residence.
Applicant must not have ever owned a home.
Applicants must not have ownership in any real estate (including land) with a market value of more than $30,000.
Family/Household taxable income as stated from the CRA Notice of Assessments must be below $100,000.
Applicants must have current combined liquid assets of less than $60,000.

(b) Eligible types of homes

Newly constructed homes with new home warranty proceeding as a turnkey purchase from a builder (deposits on new builds will not be funded and must be completed within a reasonable timeframe at the discretion of MMF FTHPP funder;
Resale market homes, single family, side by side, townhouses, condominiums, multi-unit;
Ready to Move Homes (RTMs) on permanent foundations;
Conversions from non-residential use, that feature a new home warranty;
Mobile homes on owned land, on a permanent foundation anchored to the property and acceptable to a financial institution for mortgage financing purposes;
The home purchase price is to be governed by the applicants income and down-payment relevant to mortgage and debt payments.
Maximum home purchase price $600,000.

(c) Ineligible types of homes

Homes located in life-lease communities;
Homes on leased or rented land;
Mobile Homes in trailer parks;
Self Builds or Progress Draw Constructions;

Please note that the program cannot retroactively fund any home purchase contract that has already been entered into. Please do not make an offer on a home prior to receiving approval on your application. We encourage you to reach out to LRCC before making an offer on any home.

Please note that applicants are unable to receive funding from both the MMF First Time Home Purchase Program (FTHPP) and the MMF Home Enhancement Loan Program (HELP)

MMF First Time Home Purchase Program - Guidelines

MMF First Time Home Purchase Program - Application

MMF First Time Home Purchase Program - Info Sheet

Louis Riel Capital Corporation Staff with Manitoba Métis Federation citizen Dominic Bourgeois standing in front of her new home purchased through the MMF's First Time Home Purchase Program.

Common Questions for the First Time Home Purchase Program (FTHPP):

How long does the approval process take?

We will typically provide an approval within 5 business days of receiving your application provided you submit everything required.

If approved, how long do I have to purchase a home?

Your initial approval will be in effect for 180 days. We are willing to work with citizens and process reasonable extensions provided the individual is still actively pursuing purchasing a home. Please note that funding cannot be held indefinitely.

I'm purchasing with my spouse/partner and they are not Métis, do they need to be listed as a co-applicant?

In the event you are purchasing a home with someone else, regardless of ancestry, they are required to be included on your application as a co-applicant. This would include submitting all required documents and meeting the qualifications of the program jointly.

Will I need any money of my own?

Yes. Our program will cover your entire down payment and a portion of closing costs. Closing costs are items such as legal fees, property tax adjustments, title registration, etc. You unfortunately won't know your total closing costs until after you have purchased a home and have finalized everything through your lawyer. We recommend having at least a few thousand dollars put aside in case you need to cover a significant amount of closing costs. You should also take into account costs related to furnishing your home, upgrades, etc.

Your real estate agent should be able to provide you additional information on what is a reasonable amount to need in relation to the price of the homes you are looking to purchase and what other costs might also apply to your situation.

Do I have to make my own deposit with my offer?

Yes. If your offer is accepted your deposit will first go towards any closing costs on top of what we cover.

For example: You purchase a home with a $4,000.00 deposit with your offer. Your total closing costs come out to $5,000.00 and you receive the maximum $2,500.00 from us meaning you still owe $2,500.00 more. Your $4,000.00 deposit would then be applied to this remaining balance and you would receive the remaining $1,500.00 back from your lawyer after everything is settled.

What do I do once I have an accepted offer and have purchased a home?

After you have an accepted offer to purchase a home please send us a copy of the offer immediately to ensure that there are no delays. You will also need to send us confirmation that your mortgage lender has approved you to purchase the home. We will also require your lawyers contact information as well.

How are the funds paid out?

All funds are paid out in trust to your lawyer roughly 10 days before your possession date.

Can I put additional money towards the purchase myself?

Yes, up to $60,000.00. This would include funds for the down-payment and closing costs.

Can I have a co-signor on my mortgage (eg. a parent)?

It depends. If your co-signor is going to be living with you we will consider them a co-applicant and thus all of the FTHPP policies will also extend to them.

If they are not going to be living with you then we will not consider them a co-applicant and they are exempt from our guidelines. They would need to be an immediate family member of the applicant(s) (ie parent, grandparent)

However, names on our Conditional Approval Letter need to match those going on the mortgage. If for any reason another name will need to be added to the mortgage/application, more documentation will need to be provided. Please contact us if a name does need to be added for any reason, as we will need to review the application for approval.

What if I move to another house within the 10 year period?

As long as you are transferring your mortgage(s) to the new home there likely would not be a repayment.

Can I have a renter/tenant in the home?

Yes, as long as you are living at the property as well.

What if I have already purchased a home?

Our program cannot retroactively provide any funds towards a home that has already been purchased. You have legally purchased a home once you have made an offer, it has been accepted by the seller and you have fulfilled any applicable conditions. Please apply to our program before making any offers on homes.

I have owned a home before but that was many years ago. Can I still apply?

Yes, you can apply provided it has been 10 calendar years (January 1 to December 31) prior to the date of your application.

I have recently separated from my spouse and was on the title of our home. Can I apply?

Yes, an exception may be made in the case of divorce or separation. We require that you have been living separate and apart for a period of at least 1 year. We will also require a copy of your separation/divorce agreement. In addition, there is a questionnaire that you will need to fill out with the application. You will need to be off of any active title for a period of 1 year.

Resources for First Time Home Owners:

Professionals

There are generally four professionals that you should reach out to in regards to purchasing a home. A mortgage lender, a real estate agent, insurance agent and lawyer.

Mortgage Lender
- A mortgage lender is generally a bank or credit union that approves you for the primary mortgage that is used to purchase your home. A mortgage lender will look at your income and credit (among other things) and determine how much you can potentially afford (commonly referred to as a mortgage pre-approval). After an offer is made and accepted on a home, your mortgage lender will then work to provide you with a final mortgage approval.
Real Estate Professional
- A real estate professional (commonly referred to as an "agent") assists you in a number of things related to the home purchasing process such as finding potential homes, making offers, explaining conditions and working with the rest of your professionals to ensure that the process goes smoothly.
Insurance Agent
- It will be a requirement of your mortgage that your home is properly insured. An insurance agent will be able to look at the property being purchased and compare policies from a number of different insurance providers to ensure that your home is properly protected.
Lawyer
- After an offer has been made and accepted and your mortgage has been finalized a lawyer will be used to "close" the deal. The lawyer will complete the due diligence on your property to ensure that there are no surprises related to the transfer of ownership. They will also register the mortgages associated to the transaction and provide you with the keys to your home on your possession date. All funds from our program will be sent to your lawyer in trust to be disbursed as per our instructions.

LRCC has lined up a team of professionals that have been educated on our programs and work together to ensure that your home buying process goes as smoothly as possible. Please contact us if you require a referral.

Home Inspections

As a first-time home buyer it is recommended that you have a home inspection completed to identify any potential issues with your home either as part of your offer to purchase or after you have purchased a home. Your real estate agent/professional should be able to explain the pros and cons of submitting an offer with a home inspection condition.

A home inspector will go through your home and identify any potential issues they see. They may also have advice for you on how to fix any deficiencies or potential problems.

Websites such as: www.nachi.org/certified-inspectors/browse/ca/manitoba and http://cahpi.mb.ca/members list a number of companies located in Manitoba that provide home inspections.*

* This is not an endorsement of any individual company listed on these websites. We recommend reaching out to multiple home inspectors to compare them in relation to their costs, references and how their process works.

Government of Canada Programs

Depending on your circumstances, the Government of Canada may have programs that you can access to help you with purchasing your first home:

www.cmhc-schl.gc.ca/en/finance-and-investing/mortgage-loan-insurance/the-resource/government-of-canada-offers-homeownership-incentives

Please note that our program can work in conjunction with the newly announced First Time Home Buyer Incentive through the federal government. In instances where both programs are utilized LRCC will move our mortgage position into 3rd place behind your primary lender and the federal government.

General Home Maintenance/Repairs

Routine maintenance on your newly purchased home is an important step to ensuring that it is not only operating efficiently but ensures that you avoid costly repairs down the road. The following document provides a good overview of a general maintenance schedule that can be completed to keep your home in great shape: www.nationalhomewarranty.com/sites/default/files/maintenance_manual_sept2011.pdf

Learning how to take care of your home yourself not only teaches you valuable life skills but also reduces the costs related to home maintenance and repairs. Free, step by step instructional videos are easily found online for a wide array of topics related to home maintenance and repairs. Simply type your project into a site like YouTube (www.youtube.com) and you will likely be able to access several different videos on your topic.

Please contact a qualified professional for any maintenance or repairs that you are unqualified or uncomfortable completing yourself. LRCC hosts a self-administered directory of Métis-owned businesses in Manitoba that you can access at: /business-directory

Permits

Major renovations to your home or property may require that a permit be granted by the applicable government body. The Manitoba Building Association has information in regards to what permits are, when you need them and how to go about applying for one: https://mboa.mb.ca/faq.asp.