Diane Birk

Love Where You Live.......Real Estate in Vancouver

First Time Buyers Interest-Free Down Payment Program

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:

  1. proof of status in Canada and residency in BC;
  2. secondary identification (must include a buyer’s photo);
  3. proof of income and tax filings; and
  4. insured first mortgage pre-approval.

For additional information, check out these:

Source - Real Estate Board of Greater Vancouver

Diane Birk
Office: 604-408-9311
Fax: 604-408-6648