Everybody wants to live in the Lower Mainland but a huge number of people simply can’t afford the down payment.
Now a new BC government program helps first time homebuyers make that down payment by giving a loan of up to five percent of the purchase price.
The Quick Breakdown
- The loan will match the down payment amount you have to pay, up to a maximum loan of five percent of the purchase price.
- It is interest and payment free for the first five years.
- The loan would be registered against the new property as a second mortgage.
Are you Eligible?
The program is only open to BC residents who:
- Purchase a home with a maximum value of $750,000.
- Are pre-approved for a high ratio mortgage
- Are first time homebuyers who have never owned an interest in a principal residence anywhere in the world
- Have lived in BC for a full 12 months before the application.
- Have been Canadian citizens or permanent residents for at least five years.
Notable Conditions Before You Apply
Additionally, all people who will be on title to the property must use the property as a principal residence for at least five years after the purchase and their total gross income cannot exceed $150,000.
Note that you are allowed to move out or sell the home after the purchase, but if you do so then the loan will be due in full.
Where to Apply?
For more details and to apply online please click here.
This new government loan program is not the only help available for first time buyers. New home buyers can also receive a property transfer tax exemption as well as a GST exemption on qualifying homes.
Photo Source: BC Gov’t Flickr