Premier Christy Clark unveiled a new loan program today to help first-time home buyers come up with their down payment.<\/p>\n
The BC Home Owner Mortgage and Equity (HOME) Partnership program will offer qualifying home buyers loans of up to $37,500, interest and payment free, for five years.<\/p>\n
The province will begin accepting applications on January 16, 2017.<\/p>\n
To qualify, buyers must:<\/p>\n
\u2022 be buying their first home;<\/p>\n
\u2022 obtain a high-ratio, insured first mortgage for at least 80 per cent of the purchase price;<\/p>\n
\u2022 have a combined gross household income not exceeding $150,000;<\/p>\n
\u2022 have saved a down payment amount at least equal to the loan amount;<\/p>\n
\u2022 be a Canadian citizen or permanent resident for at least five years; and<\/p>\n
\u2022 have lived in BC for at least the full year preceding their application.<\/p>\n
The loans will be due in full if the buyer defaults on a payment, ceases to use the home as a principle residence or resells the home.<\/p>\n
Key facts:<\/p>\n
\u2022 The loans will match a home buyer\u2019s contribution to a down payment up to five per cent of the home\u2019s purchase price.<\/p>\n
\u2022 The maximum purchase price to qualify for a loan is $750,000 (excluding taxes and fees).<\/p>\n
\u2022 After five years, buyers can either repay their loan or enter into monthly payments at current interest rates.<\/p>\n
\u2022 Loans through the program are due after 25 years.<\/p>\n
\u201cThis program will boost sales to first-time home buyers. Without question, they\u2019ll take advantage of it wherever they can,\u201d said Helmut Pastrick, Central 1 Credit Union chief economist.<\/p>\n
The province estimates this initiative will help at least 42,000 buyers or households province-wide over the next three years. About half of these buyers will be in the Lower Mainland, according to Pastrick.<\/p>\n