|BC Home Owner Mortgage & Equity Partnership Program
As discussed a month ago, Christy Clark has just announced the details regarding a home owners down payment matching program coming January 2017 to help our first time buyers. We are pumped as the government anticipates this will help an estimated 42,000 families over the next 3 years #BCFIRST
Under the program, the BC government will match down payment funds for eligible first-time buyers up to $37,500 with a 25-year term second mortgage.
As an example, a buyer purchasing a $500,000 home can put down 5% using $12,500 of their own funds and $12,500 from the BC Home Partnership Program. No payments are required on the second mortgage and no interest will accrue until the sixth year of the mortgage term. The total amount of matched funds will not exceed 5% of the purchase price.
Before all previous home buyers get too upset that they were not eligible please remember this will only continue to drive your home prices up further. This helps all BC home owners significantly.
– Reside in the home they are purchasing
– Be a first-time homebuyer
– Be a Canadian citizen or permanent resident for 5 years
– Have resided in BC for at least one year
– Have a combined gross income of $150,000 or less
– Have at least half of the minimum down payment required to purchase (2.5% down payment from self for 5% total)
– Be purchasing a property under $750,000
– Must live in the property for first five years (to be eligible for interest free loan)
To be eligible, buyers much be pre-qualifed for an insured high-ratio 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.
Home owners can repay the second mortgage to the Partnership Program part or in full at any time in the first five years with no penalty. After five years the interest will start to accrue and home owners will need to start making monthly payments of principle and interest. The interest rate will be outlined in the conditional loan approval letter.
The program starts Jan 16th, 2017 and is will run for three years until March 31, 2020.
Congratulations first-timer buyers and current home owners, all the best in 2017.