BC Home Partnership Program, first-time home buyer down payment incentive
The BC government has recently announced a new incentive for down payment options for First Time Home Buyers with the new BC Home Partnership Program. From Jan. 15, 2017-March 31, 2020 the Government is offering to match down payments with no interest loans for 5 years. Sounds terrific right? Well it is having mixed reviews as it will cost more money in closing costs and may take more time and effort both to be pre-qualified and then approved for the home you choose.
In my opinion it may help first time home buyers get into the market sooner rather than later. They will match the down payment to a maximum of $37,500.00, or 5% of the purchase price and you make no payments on the loan until after the first 5 years of your mortgage.
After the 5 years buyers can either pay back the loan or enter into monthly payments for the remaining 20 years of the mortgage at the prime lending rate +0.5%. The BC Home Partnership Program will start taking applications Jan. 16, 2017.
There are exceptions and criteria you must fall under to qualify for this option and if you are planning to have someone else co-sign for the mortgage with you unfortunately that is not an option under this plan.
- you must be a resident of BC for the last 12 months immediately preceding the date of the application
- you must be a Canadian Citizen or permanent resident for at least five years
- you must have met all the requirements for CMHC for a high ratio mortgage
Buyers must also meet all requirements for a mortgage through your bank or mortgage broker. The maximum purchase price is $750,000.00 and you cannot earn more than $150,000.00/Year.
Let me help you navigate the new BC Home Partnership Program and find out if it’s right for you!