BC HOME Partnership: ‘Interest-Free’ Down-Payment loans to First-Time Buyers

Beginning as of January 2017, the BC Government is implementing a “Homeowner Mortgage and Equity Partnership Program” to first-time homebuyers. The program provides repayable down payment assistance loans up to a maximum of 5% (or $37,500) over a 25-year period. The interest-free and payment-free portion of the loan will last for the first five years. The repayment schedule will operate at current interest rates over the remaining 20 years. The program offers assistance to first-time homebuyers with a combined gross household income of $150,000 or less and applies to purchases of homes with a maximum value of $750,000. Applicants must be Canadian citizens or permanent residents of five years who have lived in B.C. for at least a year. If you’re interested in taking advantage of this new promotion or would like more information please leave a comment or send an email to jsutton@sutton.com!

BC HOME Partnership FAQ

• The loan is only available to first-time homebuyers.
• Three- year province-wide program with loans advanced between January
• 16, 2017, and March 31, 2020.
• The loan will be secured by a second mortgage on the closing date of the purchase of the home.
• Must be pre-approved for an insured high-ratio mortgage for at least 80 percent of the home’s purchase price.
• The payment per $10,000.00 borrowed will be ~$50.00 per month.
• The Mortgage Insurance (CMHC) premium will be ~$250.00 higher per
• $100,000 borrowed.The home must be maintained as your principal residence for the first five
• The home must be maintained as your principal residence for the first five years (or less if the loan is paid in full). The loan must be repaid in full when the home is sold or transferred to another owner.
• Can be paid out penalty-free at any time.
• No limits on the number of loans issued by the government each year.

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