Premier Christy Clark has recently announced a new loan program called the BC Home Owner Mortgage and Equity (HOME) Partnership Program that will assist first-time home buyers by contributing to your personal down payment. The government will lend the buyer funds equal to the down payment up to $37,500, or 5% of the purchase price. This new loan would be granted to Canadian citizens or permanent residents who have never previously owned a property and is only applicable to residences with a maximum purchase price of $750,000. This will be an interest-free and payment-free loan for the first five years. After that period, buyers can then either repay their loan or enter into monthly payments at current interest rates. These loans will become due after 25 years, which is the typical length of most mortgages.
Applications will be accepted on January 16, 2017 and the program comes to an end on March 31, 2020. Additional information can be found here.
As mentioned previously, this program is for first-time homebuyers. All individuals applying that have a registered interest on title must reside in the home. In addition, you will find other requirements as seen below.
» 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)
» Obtain a high-ratio insured first mortgage on the property for at least 80% of the purchase price
» Have a combined, gross household income of all individuals on title not exceeding $150,000
» Have saved a down payment amount at least equal to the loan amount for which the buyer applied
As of February 19, 2014, the BC Government has implemented a tax break for first-time home owners and can be used in conjunction with the BC HOME Partnership Program. The First Time Home Buyers’ Program reduces or eliminates the amount of property transfer tax paid on your first home. We blogged about this back in 2014 and you can view it here. Our blog outlines both homeowner and property requirements.
For all your real estate needs, contact the WeSellVancouver team at 604-801-6654 or alternatively at email@example.com. We look forward to hearing from you!