First-time buyers interest-free down payment programPosted on January 21st, 2017
The new BC Home Owner Mortgage and Equity (HOME) Partnership program helps eligible BC residents buy a home.
The program offers first-time home buyers who have saved a down payment:
- a down payment loan of up to 5% of a home’s purchase price to a maximum of $37,500, on a home with a maximum price of $750,000.
- This loan matches the buyer’s down payment and isinterest-free and payment-free for five years.
- After five years, buyers can either repay their loan or enter into monthly payments at interest rates that are current five years from the date of the loan.
Loans through the program are due after 25 years – the same length as most mortgages.
To qualify for the program, home buyers with a registered interest on title must reside in the home and be a:
- Canadian citizen or permanent resident for at least five years;
- resident of NC for at least one year immediately preceding the date of application; and
- first-time buyer who has not owned an interest in a residence anywhere in the world, at any time.
The home buyer must:
- use the property as their principal residence for the first five years;
- obtain a high-ratio insured first mortgage on the property for at least 80% of the purchase price; and
- have a combined, gross household income of all individuals on title not exceeding $150,000.
Buyers can begin gathering the documents they’ll need to submit an online application. Buyers will need:
- Proof of status in Canada and residency in British Columbia.
- Secondary identification (must include your photo).
- Proof of income and tax filings.
- Insured first mortgage pre-approval.