Kerry McCluskey
Northern News Services

IQALUIT (Mar 08/99) - Craig and Pauline Dunphy now have somewhere permanent to hang their hats.

Residing in staff housing in Iqaluit for the last 18 months, the couple had been saving money for years to be able to afford to put money down on a house of their own. But with five kids to feed, it was pretty tough going.

"We couldn't have done it any other way. With the cost of housing up here, it would have exhausted every penny we had just for the downpayment," said Dunphy.

So when the GNWT's housing corporation announced the minimum downpayment assistance pilot program (MDAPP) on Dec. 1 of last year, which provided a $10,000 downpayment grant towards the purchase of homes in the Western Arctic and a $15,000 grant in the Eastern Arctic, the Dunphys jumped at the opportunity.

"It was the only way we were ever going to be able to afford a house. It was a stroke of luck for us," said Dunphy.

They had Iqaluit's only realtor, John Matthews, show them different properties around town, but with the severe housing shortage, it took them a while to find a suitable home.

Matthews, who's been selling real estate in Iqaluit on and off for the last eight years, said he's fielded a number of calls from people like the Dunphys since the announcement about the program was made.

"It's definitely increased the activity. It allows people who would not otherwise qualify for a mortgage to buy a house," said Matthews.

He explained that all too often, people who would like to purchase a home have trouble doing so because they get stuck in a Catch-22 situation.

"There are people who are earning good salaries but are not able to save the downpayment and because they're earning good salaries, they're not eligible for other subsidies."

Matthews said this program has allowed many people to entertain the idea of buying a home, which, in turn, has resulted in a boom in the NWT housing market.

"It's dramatic. It's really sparked interest among buyers," said Matthews.

Peter Scott, the director of the housing corporation in the Baffin region, said the MDAPP was created to do just that -- reactivate the housing market across the North.

"It was an economic development strategy to stimulate the housing market. It had been pretty stagnant," said Scott, who noted that approximately 15 people had used the grant in the Baffin region to purchase a home.

And just last month, the Canada Mortgage and Housing Corporation (CMHC) came through with more good news. After reviewing the market in Iqaluit, they recognized the high cost of housing in Nunavut's capital and raised the ceiling for their 95 per cent financing program from $175,000 to $250,000. Scott said this meant people in Iqaluit could buy a home for as much as $250,000 and be required to only put five per cent down toward the purchase.

"The average individual doesn't have to come up with as much cash to get into home ownership. It's more accessible," said Scott.

While the program was originally slated to wind up on March 31, it has been extended to June 30 in the Western Arctic. Because the new government has not yet come into power in the East, a decision on a similar extension is still pending.