Ironstone Building Company Inc. Program Terms and Conditions

HomeStart by Ironstone

The following terms and conditions apply to the Ironstone Building Company Inc. (“Ironstone”) Program:

  1. All buyers are eligible to apply for this program, including but not limited to, first time home buyers;
  2. Buyers are not entitled to a Libro mortgage loan by virtue of their participation in the Program. Buyers shall be subject to Libro’s usual loan and financing approval criteria, including but not limited to, income verification, credit review, and loan approval, to assess a buyer’s application and creditworthiness for a loan from Libro. Further, Libro’s decision whether or not to provide a loan to a buyer will be contingent on Libro being satisfied, in its sole and absolute discretion, with the risk mitigation, legal structure and operational alignment of providing the financing with Libro’s internal evaluation systems;
  3. Approved buyers (a “Participant”) will be loaned a maximum of One Hundred Thousand Dollars ($100,000.00) by Ironstone (the “Ironstone Contribution”) as a contribution towards the purchase price of a new home constructed by Ironstone (an “Eligible Property”) that is purchased by a Participant;
  4. All Participants must be the buyer of an Eligible Property, no assignments or direction for title to non-Participants are permitted;
  5. The Ironstone Contribution will be treated by Libro as part of the Participant’s down payment in their application for a loan from Libro for the balance of the purchase price for the Eligible Property;
  6. The Ironstone Contribution will not be considered by Libro when calculating a Participant’s ability to service the Libro loan;
  7. Libro shall secure its loan by way of a first position mortgage which shall be registered against the title to the Eligible Property (the “Libro Mortgage”);
  8. Ironstone shall secure the Ironstone Contribution by way of a second position vendor take back mortgage which shall be registered against the title to the Eligible Property (the “VTB Mortgage”);
  9. The VTB Mortgage shall be subject to the following terms:
      1. The principal amount (the “Principal”) shall be no greater than One Hundred Thousand Dollars ($100,000.00);
      2. The VTB Mortgage shall have a term of one hundred and twenty one (121) months from the date of registration (the “Term”);
      3. No principal or interest payments are required during the Term, which Term begins on the date of registration, provided there is no default under the VTB Mortgage;
      4. The VTB Mortgage shall not bear interest for the Term, provided there is no default under the VTB Mortgage;
      5. The VTB Mortgage shall become due and payable upon the earlier of:
          1. The Eligible Property being sold or re-financed; and
          2. Ten (10) years from the date of registration.
      6. In the event the Participant sells the Eligible Property and purchases another eligible property constructed by Ironstone within five (5) years from the date of registration of the VTB Mortgage, Ironstone will forgive twenty-five percent (25%) of the VTB Mortgage’s Principal as part of the payout and discharge of the VTB Mortgage from the Eligible Property.
  10. Provided there is no default under the Libro loan and Libro Mortgage, and the VTB loan and the VTB Mortgage, repayment of the VTB Mortgage in whole or in part may be made at any time, without notice, bonus or penalty, and on written notice to Libro;
  11. In the event the VTB Mortgage is not paid in full on or before the end of the Term, a $5,000.00 penalty shall apply, and any outstanding balance shall accrue interest at a fixed rate of 15% per annum until the VTB Mortgage is paid in full, together with any other costs, charges, or fees required by Ironstone;
  12. Refinancing of the Libro loan and Libro Mortgage may only occur if Ironstone has provided prior written consent of such refinancing;
  13. At the request of either Libro or Ironstone, Participants shall be required to execute such further and other documents as required by Libro and Ironstone, to effect the terms of this Program.

The Program is offered for a limited time only, and the above terms and conditions are subject to change or cancellation at any time, without notice.