On November 27, 2025 in Question Period, I pressed government to modernize the Down Payment Assistance Program. I raised concerns about outdated price caps, restrictive income thresholds, and rules that prevent Islanders from using the program to build new homes or ADUs. My goal is to make homeownership more achievable for young, hard‑working Islanders and help address our housing shortage.
Speaker: The hon. Member from Rustico-Emerald.
B. Trivers: Mr. Speaker, when I was in opposition – gee, it was almost eight years ago now – I was successful in getting government to bring in a down payment assistance program, known as the DPAP, because I believe in giving young Islanders a better shot at homeownership. Now, helping Islanders own their own home doesn’t just allow them to build capital; it also frees up the residential rentals that they’re living in.
However, today, the DPAP is falling behind the reality of our housing market. The DPAP purchase price cap is only $350,000, and this needs to be reviewed. Even if government kept the maximum interest-free down payment loan at $17,500, but removed the $350,000 purchase price cap, first-time homebuyers would have the option to come up with the additional down payment amount themselves to buy a home over $350,000.
Down payment assistance program
Question to the Minister of Economic Development, Innovation and Trade: Minister, will you commit to reviewing an increase to the DPAP purchase price threshold of $350,000 so this program works for more Islanders who are trying to purchase a home and secure their economic future?
Speaker: The hon. Minister of Economic Development, Innovation and Trade.
Hon. D. Compton: Thank you very much, Mr. Speaker, and hon. member, I appreciate the question.
I know home prices have really been a challenge for a number of Islanders. As the minister, I’d say I’d love to do this, but as the MLA for District 4, Belfast-Murray River, I would say there are quite a few homes for sale in our area that are $350,000 or less, including a lovely bungalow very close to where I live.
So, I have to look at both sides of this. I think that there are opportunities out there, especially in rural PEI, and I know that that is where most of the applications are for – for rural communities. I will bring it back to the department, for sure.
Speaker: The hon. Member from Rustico-Emerald.
B. Trivers: Thank you, Mr. Speaker. The reason that most of the applications are from rural communities is those are the only places where houses under $350,000 are available. But the housing needs are in the greater Summerside area, the greater Charlottetown area, Cornwall, and Stratford; that’s why we need to raise this cap.
To qualify for the DPAP, people wanting to buy their first home must also have a total annual household income that is less than $100,000. This barrier shuts out hard-working Islanders, middle income earners, young couples starting a family – the very people who drive our economy and actually pay the taxes that make programs like this possible. These Islanders deserve a fair chance to build equity and stability. Government should be using their taxpayer dollars to help them invest in their future.
Question to the minister: Will the minister look at increasing the household income limit to at least $150,000 so this program reflects today’s economic reality and does not exclude the young, hard-working Islanders that pay so much in taxes?
Speaker: The hon. Minister of Economic Development, Innovation and Trade.
Hon. D. Compton: Thank you very much, Mr. Speaker. Hon. member, we are constantly evaluating what the criteria is for the programs, including the DPAP, but I will bring it back to the department. I am quite willing to work with yourself to make sure that we have access for all Islanders.
Speaker: The hon. Member from Rustico-Emerald.
B. Trivers: Mr. Speaker, the DPAP also excludes first-time homebuyers who want to build a new home. It applies only to the purchase of existing dwellings. A young couple can’t buy or inherit a lot and then use the DPAP to build a home on it.
This government introduced accessory dwelling units – ADUs – to make it easier to build new housing next to existing homes and share infrastructure and services like driveways, water, and sewer. But right now, the DPAP cannot be used to build an ADU. These restrictions make no sense. We need to encourage new housing and homeownership.
Question to the minister: Will you remove these restrictions and allow DPAP to support first-time homeowners building new homes and families adding ADUs so that we empower Islanders to help solve the housing shortage and build capital for themselves, for the next generation?
Speaker: The hon. Minister of Economic Development, Innovation and Trade.
Hon. D. Compton: Thank you, Mr. Speaker. Hon. member, I’ll be quite happy to bring that back to our department. As I said, we’re always evaluating what the programs are that we have and how we can make it more accessible to all Islanders.
Thank you, Mr. Speaker.
