Just as a heads up to prospective BC buyer's - please note changes below:
The BC Government’s new budget has quietly cancelled the BC Housing Partnership Program that assists first time buyers with their down payment.
BC Home Owner Mortgage and Equity Partnership (BC HOME Partnership) assists residents of British Columbia who are eligible first-time homebuyers. The program provides repayable loans to be secured by a second mortgage up to a maximum five per cent of the purchase price. Available only to eligible homebuyers requiring a high-ratio insured first mortgage, the loan is for a 25-year term, interest and payment free for the first five years. After the first five years, borrowers have the option to pay out the loan in full, or begin making payments on the loan which would convert to a home equity line of credit at Prime +.50% (which is best rates).
The opportunity to take an interest free loan from the government helps first time buyers get into the market sooner (they’d only need 2.5% from your own resources). Or, for buyers who have 5% saved, it doubles their down payment from 5% to 10% which reduces their mortgage default insurance premiums by thousands of dollars.
Please note to use this program before it’s taken away, prospective buyers would need to be pre-approved for a mortgage, apply for the BCHPP before March 31st then purchase within six months.
If you have any questions or concerns about how these changes could affect you and your plans for home ownership, please call me.