New Home Buyers Program ‘Exciting News’ – Canadian Homebuilders’ Association
Prince George, B.C. – The B.C. Home Owner Mortgage and Equity Partnership is getting glowing reviews from both arms of the Canadian Home Builders’ Association.
Yesterday the provincial government announced the program will contribute to the amount first-time home buyers have already saved for their down payment, providing up to $37,500, or up to 5 per cent of the purchase price, with a 25-year loan that is interest free and payment-free for the first five years.
In Prince George, where the average price of a home is $297,000, a first-time home buyer needs to save $7,425 toward the down payment, or 2.5 per cent of the home’s purchase price, then the province will match those funds bringing the total down payment to $14,850 or 5 per cent of the home’s purchase price.
To be eligible, buyers must be preapproved for an insured high-ratio first mortgage. 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.
The program will start accepting applications Jan. 16, 2017.
“The announcement of this program is most welcome by the members of the Canadian Home Builders’ Association of Northern B.C.,” said president Jody Tindill during a news conference at a show home on Vista Ridge Dr. this morning.
“Our members are in home construction and renovation businesses. Without a healthy housing market, we don’t have a business. The change to Canada’s mortgage rules in November meant a loss of buying power for many buyers. First time home buyers were absolutely challenged by that and I know many completely got out of the market at that point.”
But no more she said thanks to the provincial government.
“Home ownership in Prince George is absolutely not out of reach. The average home price is still under $300,000…So the sooner they (new home buyers) get in the sooner they’re going to start growing equity for their future and their investments.”
Gordon Bliss, president of the Canadian Home Builders’ Association of B.C. echoed Tindill’s enthusiasm for the new program.
“New home buyers are quite excited about this new announcement. It’s awesome news because at the end of the day we need new home buyers to create an industry – to keep the industry going so that people can keep moving on,” he said.
“These people will be able to buy a house now – a new home buyer will build up some equity and probably move on to another home and that’s what keeps the economy going.”
Sounds exciting, I am sure it will help some people into their first homes, and they will honor the loans, and when it is time to renew the mortgage, hopefully the homes had appreciated and it will allow them to pay the government loan back.
Then it will also allow for underqualified buyers into the market, and will have a similar effect to the 2008 financial meltdown in the united states. This will likely occur in 2022. Of course it won’t be as severe, but will impact home price during that time period, as some people will need to sell off the home, or loosing there homes because they can not pay back the loan which will become due from the government. That is negative out look, leaking out
In general, I think less than 10% of the people the government helps out on this handout now will fail 5 years from now. So I support the idea. Way to Go BC Liberals, in their campaign to buy votes.
A loan of up to 5% of the purchase price of a home will basically bring about the 4 horsemen of the apocalypse. Got it! Thanks for the breakdown.
I also hate it when one party does something beneficial for their constituents just to buy votes, while the other party would only do it out of the goodness of their hearts. Some people would say this is a double standard, but you and I both know, it’s only a double standard for one party, right?
You still have to be prequalified to buy house all on your own or you don’t qualify for the grant, so this isn’t the same as the fiasco in the states in 2008 at all.
Abject stupidity. These political whores will say anything, as long as it’s in keeping with the party line – no matter how counter to the collective public good. I can’t imagine that these people have even a shred of common decency or a conscience. I hope that paycheque and pension are worth the cost to the people of British Columbia you’ve sold out along the way.
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