Yukon premier announces first-time home buyers program offering low-interest loans

Yukon Premier Ranj Pillai announced a new first-time home buyers program on Wednesday to help with down payments.

Pillai says the aim of the program is to keep Yukoners in the territory and "entice" those who left to pursue higher education or training to come back. 

The Yukon government says it will cover up to 50 per cent of the cost of a down payment on a home with a low-interest loan — fixed at 2.5 per cent compounded annually — that can be repaid after buyers pay off their mortgage or sell their home.

Pillai says he expects the program will be able to accommodate between 40 and 80 Yukon residents this year. 

Eligible applicants must be first-time buyers, have mortgage pre-approval and be able to cover at least 50 per cent of the down payment and closing costs, according to a news release from the territorial government. 

Applicants will be accepted on a first-come, first-served basis, says Pillai, but with priority for those who accessed the Yukon Grant for their post-secondary education. 

"If we are in a position where we have a lot of applications, we are definitely going to be waiting [for] folks that have received the Yukon Grant," Pillai said.

"And we're going to make sure that those folks are at the top of the pile so they can come back home … and bring back that skill set back to the Yukon."

Eligible homes must be located within the Yukon and remain the applicant's primary residence for the entirety of their mortgage. The release says the home must be priced at or below the average sale price for that type of dwelling in Whitehorse.

The program is replacing the home ownership loan program and is slated to cost $1 million in the territory's 2025-26 budget. The program has yet to be approved in the legislature.