A slump in applications has prompted the Region of Waterloo to change eligibility criteria for its Affordable Home Ownership Program.

The Affordable Home Ownership Program is a loan program that provides up to 5 per of the cost of a home for people to use as a down payment.

On average, the Region of Waterloo grants 40 to 50 loans a year, but so far this year there have been only 20 successful applicants.

Previously, the program was open to people with a household income up to $74,865, to buy a home worth up to $275,000. Both those amounts have now increased to better reflect the existing real estate climate; the maximum household income is now $90,500 and maximum home value is $386,000.

The housing market

"We're hearing this from real estate agents and people that we approved under the program that at $275,000 they couldn't find anything that met their needs," said Jeffrey Schumacher, supervisor of housing supply initiatives with the Region of Waterloo.

"There are only 31 three-bedroom plus homes on the whole market. [There were ] mostly one or two bedroom condos. People wanted townhomes or a small starter home."

By the numbers: Home Price 5% down

$200,000 $10,000

$225,000 $11,000

$250,000 $12,500

$275,000 $13,750

$300,000 $15,000

$350,000 $17,500

$386,000 $19,300

There are a number of criteria for applications, including:

Qualify for a mortgage.

Have a maximum household income of $90,500.

Be at least 18 years old and currently renting.

Not own or have an interest in a home.

Not owe money to a community housing landlord.

Be a legal resident of Canada.

Intend to have this home as your one and only residence

And the home must be: