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BC Government offers down payment loans to first-time home buyers by Kelsey McPherson

Posted by mcpherson1, December 16th, 2016 at 11:30 pm

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Exciting news rocked BC’s real estate industry with the announcement the BC Government’s plan to help home buyers get their foot in the door to their first home.

Called the BC Home Owner Mortgage and Equity Partnership program, this new action plan offers qualified buyers with a government-backed loan of up to $37,500, or 5 per cent of the purchase price, with a 25-year loan.

No payments are required to be made and interest will not accrue for the first 5 years. After the first 5 years, home buyers will be able to pay off the loan at any time or make extra payments with no penalty, allowing for lots of time to save up.

Applicants must be pre-approved for a first mortgage, plus there are a number of other requirements for the program, including limits on income, home purchase price and residential obligations.

The goal is to match part of a buyer’s down payment to help people who can afford mortgage payments, but who are having trouble saving up for a down payment.  This program comes as part of the government’s housing strategy to make home ownership more attainable and affordable for the middle-class anywhere within the province.

While the program has been received with some criticism, many view it as a great opportunity for first-time buyers to fulfill their dream of buying a home much quicker in today’s market.

If you, or someone you know could be eligible, don’t miss out! Officially open for applications on January 16, 2017, so far the plan is to offer the program only for the next 3 years.

Contact your Realtor today to learn more about the program and how it may help you.

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