BC Government Announces Assistance for First-Time Home Buyers

What?  Today, the BC Government announced a new program that assists first time home buyers by providing repayable down payment assistance loans: The BC Home Owner Mortgage and Equity Partnership program will contribute to the amount first time homebuyers have already saved for their down payment, up to $37,500 or 5% of the purchase price with a 25-year loan that is interest-free and payment-free for the first five years. How does it Work?

• No monthly interest or principal payments required during the first five years, as long as the home remains the homebuyer’s principal residence.
• After the first five years, home buyers begin making monthly payments at current interest rates.
• Home buyers repay the loan over the remaining 20 years, but can make extra payments or repay it in full at any time without penalty.
• The loan must be repaid in full when the home is sold or transferred to another owner.

Who is Eligible? To be eligible, buyers must:

• Be a Canadian citizen or a permanent resident for at least 5 years and living in BC for 1 year
• Be a first-time home buyer
• Plan to purchase a home for $750,000 or less
• Have at least half of the minimum down payment required to purchase a home
• Have a total household income of $150,000 or less
• Purchase a new home as a principal residence
• Be pre-approved for an insured high-ratio first mortgage (mortgage down payment is less than 20% of the home price).

What is the Process? The first time buyer:

1. Finds a home and makes an offer subject to financing
2. Applies and receives confirmation of eligibility for the BC Home Partnership program
3. Is pre-approved for a mortgage from an approved lender
4. Takes the BC Home loan commitment to their financial institution
5. Gets final approval for an insured mortgage from their lender
6. Purchases the new home and moves in
7. On completion of the sale, program funds will be advanced and the loan will be registered as a second mortgage on the property’s title.

When and How to Apply? Jan.16, 2017, the B.C. Home Owner Mortgage and Equity Partnership program will start accepting applications. Go here for detailed program information and application.