Mortgage Assistance Program
October 9, 2001
NOTE: This policy applies to eligible faculty members and approved staff who were appointed prior to July 1, 2005. Eligible faculty members and approved staff appointed on or after July 1, 2005, with a home purchase closure date on or after September 1, 2005, should refer to policy A 21.07.Policy
- This policy is to assist in the purchase of a principal residence by providing an interest-free mortgage of up to $25,000 for five years to new SFUFA bargaining unit members, (excluding those in limited term positions) and approved staff, who are relocating 100 km or more (or from Vancouver Island) to take up appointments at Simon Fraser University.
- CIBC Mortgages Inc. has been appointed as the plan administrator. Eligible employees shall make application directly to CIBC Mortgages Inc., and must meet all normal equity requirements for housing purchases. The funds advanced by CIBC Mortgages Inc., including the $25,000 component upon which the University pays the interest for five years, shall constitute the first mortgage.
- For eligible employees resident in Canada 1, the interest-free benefit of the mortgage assistance program funds is tax exempt under section 80.4 of the Income Tax Act. For other eligible employees, the interest-free benefit of the mortgage assistance program is taxable.
- Normally, mortgage assistance will be available up to one month prior to the start date of the appointment. The latest time at which an employee will be approved for mortgage assistance by the University will be three years following the start of the appointment.
- During the five year term of the mortgage, the University shall pay the interest on the mortgage.
- At the end of the five year period the University shall stop paying the interest. The employee shall then assume the interest payments or make alternate arrangements with CIBC Mortgages Inc.
- When an employee who holds a mortgage through this program ceases employment with the University, the mortgage interest assistance will terminate.
- Eligible employees shall be advised of the program at the time of appointment.
- Upon application to the University's Department of Financial Services by the eligible employee, the Department shall provide confirmation of the offer of employment and salary level in the form of an Eligibility Letter which is forwarded to the plan administrator, and copied to the employee, for inclusion with the application made to CIBC Mortgages Inc.
- Eligible applicants should contact CIBC Mortgages Inc. at 1-800-663-4819, Press 1, Ext. 6826, or by mail at 700-33 Yonge Street, Toronto, Ontario M5E 1G4
Questions of interpretation or application of this policy or it procedures shall be referred to the Vice-President, Academic, whose decision shall be final.
1 as defined by Revenue Canada