FAQ's

Eligibility:

Q: Who does the combined income of less than $88,000 apply to? Everyone that will live in the house?

A: The criteria to be eligible for the First Place Program only applies to the applicants (those holding the mortgage and title to the home) and does not include the income of any additional residents or household members.

Q: Do applicants have to have two incomes combined of less than $88,000 to qualify? Can it be a household with one full time working person earning less than $88,000?

A: Only applicants applying for the mortgage and on title for the home must have the combined of less than $88,000.

Example A: Two persons applying for mortgage.
(Person A annual income + Person B annual income =
income of less than $88,000.)

Example B: One person applying for mortgage.
(Person A annual income is of less than $88,000)

Q: Can a single person earning less than $88,000 apply?

A: Yes provided he/she meets the eligibility criteria and has an income less than $88,000.

Q: How did the City select the combined annual income of less than $88,000?

A: This range represents an estimated qualifying income needed for mortgage approval for the housing products based upon a 6% interest rate, amortized over 40 years, with gross debt service ratio of 32% and total debt service of 42%. These mortgage terms are typical of mortgage products offered by financial institutions.

The income range will enable working applicants that were just out of reach of purchasing their first home to qualify even if they have a car loan and moderate student loans outstanding.

Q: If there are two applicants to purchase the home and one was a previous homeowner yet they meet all the other requirements – can they still apply?

A: No. Previous homeowners are not eligible to purchase a home under this program. Any applicants who will apply for the mortgage and hold the title on the home must comply with all the eligibility requirements.

Q: Can employees of the City of Edmonton and/or their family members apply?

A: Any Canadian citizen or landed immigrant whom meets the criteria may apply.

Town home specifics:

Q: Do purchasers get to pick their own: flooring, appliances, lighting, countertops, cupboards, colour scheme?

A: Greenview - Customers can choose from three designer selected standard colour schemes. Please contact the builder.
A: Canon Ridge – Customers can choose from four designer selected standard colour boards. Please contact the builder.

Q: Do the town home condominiums come with a warranty?

A: Both Rohit Communities and Best Communities by Landmark builders participate in the Alberta New Home Warranty Program.

Q: Are pets allowed in the condominium town homes?

A: Yes small pets are allowed, under 15 inches at the shoulder provided it’s not a pit bull. Each pet must be individually approved and the owner must sign a waiver.

Q: Are there age restrictions to living in the condominium town homes?

A: No

Q: Do the town homes come with a yard?

A: Greenview – While individual yards are not included, the site has fully landscaped areas in front and back of the homes as well as plenty of nearby park area.

A: Canon Ridge - They come with a deck with privacy screening. The site has a landscaped common area as well as the site backs onto the park space.

Q: Why don’t the pilot sites have garages?

A: In order to create homes in the price ranges offered and to maximize the number of town homes on each site, garages are not included.

Q: How many parking spaces does each unit have?

A: The purchase price of each townhome will include at least one outdoor non-covered parking space.

Q: Are upgrades to the town homes available?

A: Flooring upgrades may be provided by the builder. Please contact the builder to discuss.

Q: How much are the condo fees?

A: Canon Ridge - Approximately $130 per month

A: Greenview - Approximately $115 - $146 per month

Q: What is included with the condo fees?

A: Street lights, insurance, building general liability, grounds maintenance and snow clearing, exterior building maintenance, reserve fund contribution.

Q: Can I buy a lot and build my own town home?

A: No. The sites have been sold to the builders and have had a thorough design review with community representatives.

Q: When will the homes be ready for move in?

A: The town homes will be completed through a staged construction process with the first town homes available in Spring 2009. Please contact the builder for details if you are a successful draw applicant.

Q: Do the town homes have basements?

A: Yes they have full unfinished basements.

Q: If I purchase one of the homes, can I put a secondary suite in my basement?

A: The zoning that applies to these town home sites, Community Services, does not allow secondary suites.

Q: What is the range of the value of land for each town home?

A: The value of land ranges from $26,770 to $32,250 in Canon Ridge, and from $29,750 to $38,780 in Greenview.

Unit Selection:

The town homes are sold directly by the builder on a first-come first-serve basis. Please contact Rohit Communities and Landmark Best Communities for more information.

Q: What if I am an out of town applicant? Can I just mail or courier my application package?

A: Please contact the builders directly Rohit Communities and Landmark Best Communities to make arrangements.

Q: What if my family and my parents are both interested in purchasing a town home – can we select units next to each other?

A: Please contact the builders directly.

Q: What happens if some of the people drawn to purchase a home change their minds – will others get a chance?

A: Should applicants decline the unit selection and purchase, the next applicant in the order drawn will be contacted and the process will be repeated until all available units are sold.

Q: What if I select a unit and then change my mind?

A: Buyers have 10 days to review all documents before the sale becomes legally binding on the parties.

Program Requirements:

Q: Why does the City have a buy-back option?

A: The City may exercise its right to purchase a unit from an owner who does not comply with program requirements.

Q: Why does the City require the home purchasers to be owner/occupants for five years?

A: The First Place program is intended to provide homes to first-time homebuyers and not to investors or landlords who may only have a speculative interest in the property.

Q: What if I am one of the successful purchasers of a home but can’t stay the full five years?

A: The City may exercise its right to purchase the home or the home may have to be sold by the original buyer to another first-time homebuyer qualified by the City. In either case prior to five years the original owner will not have paid for the land portion of the town home, and therefore, will not receive any benefit (sales proceeds) from the land portion of the overall property value.

Finance:

Q: Do I have to get my mortgage from the lending institutions affiliated with this program?

A: Mortgage financing can be obtained from any financial institution that uses the First Place Pre Approved Mortgage Certificate. The lending institutions affiliated with this program are knowledgeable about the financial benefits that were negotiated by the City of Edmonton for the First Place Program.

Specific benefits include the 5 year land payment deferral and reduced CMHC mortgage insurance premium.

All purchasers who obtain financing must provide the First Place Pre-Approved Mortgage Certificate as part of their application package.

Q: When is the minimum 5% down payment due?

A: The drawn applicants will be contacted to meet the builder at an appointed time. The minimum 5% down payment will be required at the time of unit selection and the signing of the sales agreement.

Q: When do I have to begin paying for the land portion of my purchase?

A: Purchasers must pay the full value of the land on the 5th anniversary date of them taking title to the home. Purchasers may refinance in the 5th year and are encouraged to discuss this requirement with their lending institution.

General:

Q: If I’m not ready to purchase a home now but want to later, are there other opportunities?

A: The first two sites – Greenview and Canon Ridge are pilot sites for the First Place Program. Once they are sold out and the program has been evaluated, a plan will be developed for the remaining 18 sites. For information about the other sites, visit www.edmonton.ca/firsttimebuyers.