“Jane” got in touch with us not long ago after listening to our podcast on How Millennials Can Stay in Vancouver.
She loves the city but described her frustration with living in Vancouver – a frustration so many know.
Jane is in her late 20s, gainfully employed full time with an above-average salary and a bright future, and living with a roommate who has long since past his expiry date. She was beyond ready to buy her own home.
Even with her good salary, Jane had very little money at the the end of each month to save for a down payment. She had managed to save $18,000 but was still years away from a down payment that would allow her to get a loan on a property she would consider calling home.
That is until now…
The BC Provincial Government announced a new loan program in December, 2016 that seeks to help first-time home buyers like Jane (and potentially you!) with interest free loans for the first 5 years.
The BC Provincial Government is now processing applications.
We have boiled down the aspects of the program relevant to you:
Highlights of BC Home Partnership Program:
- The BC Home Partnership Program matches a first-time buyer’s down payment of up to 5% of the home’s purchase price, as long as the purchase price falls below $750,000
- The loan is interest free for 5 years and no payments are required
- After the 5 year term, buyers can repay the loan outright or enter into monthly payments at current interest rates
- The Home Partnership Loan is due after 25 years – which is the same length as high ratio mortgages
- The loan will be registered on your property title as a second mortgage
To qualify for BC Home Partnership loan, anyone who appears on the title of the home must meet the following criteria:
- The applicant must be a Canadian citizen or permanent resident for the last five years
- The applicant must have lived in British Columbia for at least 1 year prior to an application
- The applicant must be a first-time homebuyer who has not owned an interest in a principal residence anywhere in the world
- The applicant cannot purchase a home for more than $750,000
- The applicant must be eligible for a high-ratio insured first mortgage for the home
- The combined, gross household income of all individuals on title must not exceed $150,000
- The home in question must be a principal residence for the five years after purchasing.
Does it sound like you may be eligible? Do you have a question?