First-time buyer’s interest-free down-payment program2017-01-11 11:47:15 Posted By Jila Rezai
The new BC Home Owner Mortgage and Equity (HOME) Partnership program will begin accepting applications on January 16, 2016.
For a first-time homebuyer who has saved a down payment:
- The program offers a down-payment loan of up to 5% of a home’s purchase price, up to $37,500, on a home with a maximum price of $750,000.
- The loan matches a buyer’s down payment and is interest-free and payment-free for five years.
- After five years, the buyer can either repay the loan or make monthly payments at current interest rates.
- Like most mortgages, the loan is due after 25 years.
To qualify for the program, a homebuyer, with a registered interest on title, must reside in the home and be:
- a Canadian citizen or permanent resident for at least five years;
- a resident of BC for at least one year immediately preceding the date of application; and
- a first-time buyer who has never owned an interest in a residence anywhere in the world.
The home buyer must also:
- use the property as his or her 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.
To submit an online application once the program begins, a buyer will need the following four documents:
- proof of status in Canada and residency in BC;
- secondary identification (must include a buyer’s photo);
- proof of income and tax filings; and
- insured first mortgage pre-approval.