New B.C. Home Owner Mortgage and Equity Partnership Program
Today while in Surrey, BC, our Premier Christy Clark announced that the provincial government will be matching the down payment of first-time home buyers with five-year interest-free, payment-free loans.
Here are the details that we know so far in order to qualify:
- Be a Canadian Citizen or Permanent Resident for 5 years.
- Have lived in BC for at least one year.
- Never owned a residential property anywhere in the world.
- Have a down payment up to or equal to the amount of the loan (up to $37,500 or 5% of the home purchase price).
- Pre-qualify for a high-ratio first mortgage for at least 80% of the purchase price.
- Purchase a home worth less than $750,000 (including condos, townhouses, and detached houses).
- Have a gross household income of less than $150,000.
- Use property as principal residence for first five years.
The way the interest free loan will work is that the government will put a second mortgage on the property but not require interest payments or payment on the principal for the first five years. After five years the government will collect on a 20-year prepayment plan set at prime plus 0.5%.
Applications of the Home Owner Mortgage and Equity Partnership program will open January 16, 2017. The program will end March 31, 2020.
Will this new government incentive help you get into the BC real estate market sooner than you hoped? Will this help speed up the process of saving for a down payment?
Call me at 778-316-4290 to discuss your real estate options in 2017 or browse through The Taylor Team’s tips for first time home buyers.
Below are some more news articles about the Home Owner Mortgage and Equity Partnership Program.