“We believe every British Columbian deserves a place to call home,” said Premier Christy Clark. “We’ve invested in affordable rental housing, we’ve invested in transitional and emergency housing, and now we’re partnering with first-time buyers to make the purchase of their first home more affordable.”
As I wrote in my last Blog New Year, New Home! 5 Steps to Home Ownership in 2017, saving for a mortgage down payment can be very hard for first-time homebuyers. To help give first time buyers a better chance at home ownership, starting on Jan. 16, 2017, the B.C. Home Owner Mortgage and Equity Partnership program will start accepting applications.
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. Through the B.C. HOME Partnership program, the Province is investing about $703 million over the next three years to help an estimated 42,000 B.C. households enter the market for the first time.
“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. This partnership program is another important way we’re taking action on housing affordability.”
During the first five years, no monthly interest or principal payments are required as long as the home remains the homebuyer’s principal residence. After the first five years, homebuyers begin 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.
To be eligible, buyers must be preapproved for an insured high-ratio first mortgage (mortgage down payment is less than 20% of the home price). 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.
There are a few other programs that help first time buyers save money and we can touch on those next week. Buying a home should not be so hard! If you have any more questions please give me a shout.
Happy Buying and Selling! :)
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Learn how to apply: https://news.gov.bc.ca/files/Housing_Campaign_HOME.pdf
To learn more about the Province's actions on housing affordability, visit: http://housingaffordability.gov.bc.ca/
For additional details about the Home Ownership Partners in Equity program, please visit: https://homeownerservices.bchousing.org
B.C. Home Owner Mortgage and Equity Partnership program, BC Housing:
Toll Free Number: 1-844-365-4727