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Elizabeth Biberger: Real Estate in Duncan & Cowichan

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B.C. Home Owner Mortgage and Equity Partnership Program

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 B.C. Home Owner Mortgage and Equity Partnership Program

The BC Government has implemented a new program to assist first time buyers.  The program is designed to assist with the down payment.

Some details:

-       Purchase price must be $750,000 or less

-       Maximum available from program is an amount equal ½ of your current saved down payment up to a maximum of $37,500.

-       Household income must not be over $150,000

-       Must be your principal residence

-       All persons on title must qualify

-       Registered as a second mortgage with a 25 year amortization

-       Interest free for first 5 years.

-       No payments for first 5 years

-       Interest set at Royal Bank prime plus .5% at year 6 and then again at year 10, 15 and 20

-       You may make payments on the loan or repay in full at any time

-       You must repay immediately in any of the following situations

  • You sell the home
  • It is no longer your principal residence in first 5 years
  • You default on your first mortgage

My thoughts:

For those first time buyers that are good planners and money managers this could be a very good program to get your foot in the housing door.

For those first time buyers that find planning and saving a challenge this may not be the program for you.  Five years can pass by very quickly and the additional cost may be challenging when due.  Houses have many unplanned expenses that come along with them that can make saving difficult if you are financed to the max.

I recommend speaking with your mortgage broker for more information on this product.

 

Some Useful Links:

https://news.gov.bc.ca/files/Housing_Campaign_HOME.pdf

http://www2.gov.bc.ca/gov/content/home/featured-services/services/bc-home-owner-mortgage-and-equity-partnership-program

https://www.bchousing.org/news?newsId=1479148447000