What is this program?
The government of British Columbia has introduced a program designed to help first-time homebuyer clients buying residences located in BC. Repayable down payment assistance loans will be made available between February 15, 2017 and March 31, 2020 to eligible first-time homebuyers requiring a high-ratio insured first mortgage.
How does it work?
After a Buyer is pre approved for their mortgage with their mortgage broker they can apply for the program using the online application form on the program website.
The program will match Buyer’s down payment amount for up to 5% of the purchase price of the home. For the first five years, the 25-year loan is interest-free and payment-free. Afterwards, they will need to make principal and interest payments, amortized over the remaining 20 years. Our understanding is that this interest rate will be based on today’s rates.
Eligibility Requirements Include:
* Clients on title must be first-time homebuyers.
* Client must have been a Canadian citizen or permanent resident for at least five years and have lived in BC for the last 12 months.
* Client plans to purchase a home for $750,000 or less.
* Client has saved at least half of the minimum down payment required.
* Client has a total household income of $150,000 or less.
* Client is making the home their principal residence.
* Clients that are currently approved for a mortgage and meet the qualifications can apply for down payment assistance.
* Maximum amount available though the program is $37,500.
Other terms and conditions of the loan program apply. For information about the program, visit BC Housing at www.bchousing.org/housing-assistance/bc-home-partnership.