Interest-Free Loans for First Time Home Buyers

(December 15, 2016 , posted in Buying a Home)

Finally, some good housing news from the province of British Columbia! 

A new program, The BC Home Owner Mortgage and Equity Partnership Program, announced today will match down payments that people have already saved.  The government says that they will soon start matching up to 5% of a home buyer’s down payment, to a maximum of $37,500, by way of an interest-free, payment-free, 25-year loan.

For example, on a $475,000 townhome, you will only have to save up around $12,000 to make an offer — where before you would have needed to save $24,000 for the down payment.

“We believe every British Columbian deserves a place to call home,” says Christy Clark, Premier of British Columbia. “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. I think it’s a good deal for every British Columbians.”

At today's news conference in Surrey, Premier Clark was added “I think it’s important that government is there to help people. Our economy is growing at a fast pace, we’re the fastest growing economy in the country. We can afford to make these investments.” She also believes governmental analysis that show this move won’t drive up prices in our real estate market.

The qualification for this is similar to the property purchase tax exemption: home buyers must be Canadian citizens who have lived in Canada for at least five years, lived in BC for a minimum of one year and be pre-approved for a mortgage from an approved lender to be eligible. 

The program will start accepting applications from potential home buyers as of January 16th, 2017.

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