Down Payment Loans for First Time Buyers Offered by the BC Government

Premier Christy Clark is offering the BC Home Owner Mortgage and Equity or HOME Partnership Program. This program simply means that qualifying homebuyers loans up to $37,500, interest and payment free – for the next five years. The acceptance of applications will begin on January 16, 2017. The set of qualifications must be kept in mind upon submission of application next year:

• It has to be the first home to be bought by the homebuyer.
• Ability to obtain a high-ratio, insured first mortgage for at least 80 per cent of the purchase price
• The household income when combined has to be at the maximum of $150,000
• The saved down payment amount must be at least equal to the loan amount
• Has to be a Canadian citizen or permanent resident for at least five years
• Must have lived in BC for at least the full year preceding their application

  Should the buyer default on a payment, and uses the home as a principle residence or resells the home, the loan will be due in full.   Four key facts stand as the pillars of the program as well:

• The loans will match a home buyer’s contribution to a down payment up to five per cent of the home’s purchase price
• To qualify for a loan, there has to be a maximum purchase of $750,000 that excludes taxes and fees
• After 25 years, the loans through the program is due
• Buyers can either repay their loan or enter into monthly payments at current interest rates after five years

  The program that is offered by Premier Christy does increase the potential of boosting sales to first time homebuyers. And there is indeed the confidence that the estimate of 42,000 buyers or households province-wide will take advantage of it for the next three years.