BC Home Buyers Partnership Program
October 27 2017 Posted by Pauline Hardy
Should You Apply for the BC Home Owner Mortgage and Equity Partnership?
To help make homeowner dreams come true, the Province of B.C. is partnering with first-time home buyers who have already saved some or all of their downpayment through the new B.C. Home Owner Mortgage and Equity (HOME) Partnership program announced December 15.
How? With a downpayment matching loan that is interest-free and payment-free for the first five years.
- Up to 5% of a home’s purchase price is available to a maximum home price of $750,000. As a result, the maximum loan is $37,500.
- This program matches your own downpayment, which can come from savings, including RRSP money, or gifted money from a family member.
- After five years, buyers can either repay their loan or enter into monthly payments at current interest rates that will be amortized over 20 years.
$500,000 home purchase
- Minimum required downpayment is $25,000 (5%)
- If you have saved the full amount, then this program will match your $25,000, giving you a total of $50,000.
- If you have saved $12,500, then this program’s matching will give you enough to purchase the home.
$750,000 home purchase
- Minimum required downpayment is $50,000 (5% on first $500,000 and 10% on remainder)
- The maximum matching loan amount is $37,500.
- If you save this amount, then you’ll have a $75,000 downpayment.
- If you have saved $25,000, then the program will match and you’ll have enough to buy this home.
- Have strong income, but limited to a combined, gross household income of all individuals on title not exceeding $150,000.
- You must be a first-time buyer, and never owned a principal residence anywhere in world
- Have been a Canadian citizen or a permanent resident for the last 5 years and lived in B.C. for 12 months immediately preceding the day you apply.
- All individuals with a registered interest on title must reside in the home during the first five years.
- Purchase price cannot exceed $750,000
- The loan must be paid off in full if you sell the home or rent it.
- You must obtain a high-ratio insured first mortgage on the property for at least 80% of the purchase price
Easy 2 step process to take advantage:
- Get preapproved for your mortgage now. Go to the online application on my website.
- Once you are pre-approved, you can apply to the program at BCHousing.org. Before applying, make sure you have:
- Proof of status in Canada and residency in BC
- Secondary identification (must include your photo)
- Proof of income and tax filings
- Insured first mortgage pre-approval
British Columbians buying their first home can also get help through other Housing Action programs like the First Time Home Buyers’ Program and the Newly Built Homes Exemption.