The provincial government is offering first-time homebuyers the chance to get a mortgage via an interest free loan. The B.C. Home Owner Mortgage and Equity Partnership program provides a maximum of $37,500 or up to 5% of the purchase price of a home, with a 25-year loan that is both interest-free and payment-free for the first five years after signing.
This is great news for a lot of younger people, and old of course. One of the downfalls many people say is getting into the Vancouver real estate market is unaffordable, so it’s nice to see the government taking some serious steps to address some of the problems.
The provincial government states the intention of the program is to assist people who can afford the mortgage payments on a new home but are challenged to make the down payment, and the province will start accepting applications on January 16, 2017. Hopefully this will allow a lot of people the chance to achieve their dream of owning a home, and this will help them achieve that goal without racking up too much financial debt in the process.
Homebuyers who qualify for the grant will pay no monthly interest or principal payments over the first five years as long as the home remains their principal residence. After that homebuyers will begin making monthly payments at the current interest rate levels. They will then pay the loan back over the remaining 20 years, and may also make extra payments or repay it in full at any time without penalty. The maximum purchase price of a home that qualifies for the loan is $750,000.
There are substantial eligibility requirements to be accepted. Applicants must be permanent Canadian residents for the past five years and B.C. residents for the past year and combined income must be $150,000 or less and homebuyers have to be pre-qualified. It’s great to see our government take legitimate steps to address concerns of many residents of this area. Vancouver’s real estate market is tight, so it’s nice to see some of its hardest working citizens will now get a leg-up to get into the market.