Peel Region is set to launch a mortgage loan initiative aimed at helping low income residents buy a home.

But as the May start date draws closer, councillors acknowledge the roughly $208,000 cap being made available per home buyer won't buy much in Peel's housing market.

"First off, where you going to find a home for $208,000 in Brampton, in Peel?" asked Elaine Moore, regional councillor for Brampton wards 1 and 5.

Dubbed Home in Peel, the program will provide up to $8,500 in down payment loans to first time buyers.

To qualify, participants must be at least 18 years old, have a household income of less than $62,600 and currently be renting.

The loan will be forgiven provided homeowners don't default on their mortgage payments and live in the home for at least 20 years.

The purchase must be a resale home in Peel worth no more than $208,000.

The initiative has come under heavy fire and some councillors have questioned whether running the program is even worth it, seeing as the average price of a home in Peel is $326,600. 

Moore said not only is $208,000 not enough money but the criteria for eligibility would merely drive people away.

"The criteria is the home has to be resale, cost under $208,000 and people have to live there for 20 years," Moore charged. "The criteria for accessing the money makes it very difficult for it to be a program of any interest to anybody in Peel Region. My belief is it (the program) will not appeal to very many people."

Home in Peel is part of the Canada-Ontario Housing Program geared to helping the province's poorest families afford a place to live without having to sacrifice other necessities of life.
Ottawa and Queen's Park will provide $2.5 million for the program managed by Peel.
Keith Ward, Peel's commissioner of human services, said the region has to implement the program or risk having the money yanked.

"We don't want to be seen as the bad guys here in not participating in this program," Ward said. "This agreement was part of a federal and provincial government deal signed some years ago. It's a package deal so there is some concern that taking this away will take away the whole deal."
Ward said regional staff will continue to press the Ministry of Municipal Affairs and Housing to hike the amounts, although he is confident a change is already in the works.

"We have been told that ministry staff have raised issue with the minister because we aren't the only ones complaining," said Ward, noting the $208,000 was initially intended for new housing. "It (homes worth $208,000) is a pretty thin slice of the market overall so raising that price limit will certainly give a lot more flexibility."

Peel officials have asked Queen's Park to hike the maximum house price to $247,000 and the household income level to $75,800.

Councillors have also asked the occupancy criteria of 20 years be reduced to 10 years.
"It's a starter home. You don't want to stay there for 20 years," Moore added.