Province Announces Plan to Help First Time Home Owners
Prince George B.C. – The Province of B.C. will be offering interest free loans to first time home buyers to help them get into the housing market.
The B.C. Home Owner Mortgage and Equity Partnership program contributes to the amount first-time homebuyers have already saved for their down payment, providing up to $37,500, or up to 5% of the purchase price, with a 25-year loan that is interest-free and payment-free for the first five years.
After the first five years, homebuyers start making monthly payments at current interest rates. Homebuyers will repay the loan over the remaining 20 years, but may 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.
“The first step into the market can be the hardest step, so our government will partner with homebuyers to help them achieve their minimum down payment,” said Rich Coleman, Minister of Natural Gas Development and Minister Responsible for Housing. “This partnership can help lower their monthly costs in the first five years, and help make home ownership more affordable. ”
There are conditions to qualify though as buyers must be preapproved for an insured high-ratio first mortgage (mortgage down payment is less than 20% of the home price). Other conditions include:
- * Have been a Canadian citizen or permanent resident for at least five years.
* Have resided in British Columbia for at least one year immediately preceding the date of application.
* Be a first-time buyer who has not owned an interest in a residence anywhere in the world at any time.
* Use the property as their principal residence for the first five years.
* Purchase a home that has a purchase price of $750,000 or less (excluding taxes and fees).
* Combined, gross household income of all individuals on title cannot be over $150,000.
* Have saved a down payment amount at least equal to the loan amount for which the buyer applied.
The B.C. Home Owner Mortgage and Equity Partnership program will start accepting applications Jan. 16, 2017. More information is available here.