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FOR RELEASE     #06-009
January 16, 2006

Yukon Housing Corporation Adjusts Affordability Threshold

Yukon Housing Corporation offers Home Ownership Programs to bridge market gaps in the availability of home ownership financing for Yukon residents.

Clients who cannot receive mortgage financing from banks for reasons such as insufficient down payment, seasonal or self employment, but have good credit history and an income capable of supporting regular mortgage payments may qualify for first mortgage financing through YHC.

YHC's first mortgage program requires a 2.5 per cent down payment and a minimum 5 year term.

Recent changes to the program allow clients to access up to 30 year amortization period and a reduced interest rate. The mortgage rate is calculated at 1 per cent below the calculated average of the five major banks' five-year posted rates. In addition, clients can finance homes up to $195,000. This is an increase from the previous financing limit of $170,000.

The changes will allow more Yukoners to access home ownership. As an example, to qualify for a $150,000 mortgage with an interest rate of 5.5 per cent amortized over 25 years, clients used to need an income of $42,772 and carry a monthly payment of $916. With the changes, clients can access a $150,000 mortgage with an interest rate of 4.5 per cent amortized over 30 years with an income of $36,800 and carry a monthly payment of $756.