CALGARY - A downtown condo developer is taking action to “revitalize home ownership” by introducing its own stimulus package for its highrise residential tower.

Homburg Invest Inc., said it doesn’t want to sit on unsold condos and Tuesday it announced its program for the 19-storey Castello development at 530 12th Ave. S.W.

In the 106-unit building, there are 42 remaining to be sold.

Aside from a 10 per cent down payment, the stimulus package includes that the balance would be paid in two instalments by way of first and second mortgages.

The first mortgage would be at four per cent for a five-year term on only 50 per cent of the purchase price. Payments on the first mortgage are interest payments only, calculated as simple interest.

The second mortgage will be calculated at six per cent, simple interest, for a seven-year term on the remaining 40 per cent of the purchase price. There will be no payments required on the second mortgage until the end of the term where by the accrued interest will be due.

Prices have already been slashed by an average of $100,000 per unit in the condo tower with 60 per cent of the 106 units occupied. Prices range from a low of $400,000 to $1.1 million.

The number of condos under construction in the Calgary census metropolitan area has been in decline since its peak level in May 2008, said Lai Sing Louie, senior market analyst in Calgary for Canada Mortgage and Housing Corp.

At the end of April, there were 6,746 condo units under construction which was 35 per cent down from the 10,408 units a year ago.

The record level was achieved in May 2008 with 10,746 condo units under construction in the Calgary CMA, said Louie.

In February, a national housing report said new unsold condominiums are becoming a concern in the Calgary market.

The Altus Group Housing Report said most of the unsold units in Calgary are already completed or under construction and the expected decline in new condo apartment sales this year could lead to a “sizable” increase in the number of completed and vacant units.