FORT ST. JOHN, B.C. – Premier Christy Clark announced today that they will start offering loans to first time homebuyers towards a down payment on a home.
“We believe every British Columbian deserves a place to call home,” said Premier Christy Clark. “We’ve invested in affordable rental housing, we’ve invested in transitional and emergency housing, and now we’re partnering with first-time buyers to make the purchase of their first home more affordable.”
The “B.C. Home Owner Mortgage and Equity Partnership program” will contribute to the amount first-time homebuyers have already saved for their down payment, providing up to $37,500, or up to 5% of the purchase price, with a 25-year loan that is interest-free and payment-free for the first 5 years.
“During the first 5 years, no monthly interest or principal payments are required as long as the home remains the homebuyer’s principal residence. After the first 5 years, homebuyers begin making monthly payments at current interest rates. Homebuyers will repay the loan over the remaining 20 years, but may make extra payments or repay it in full at any time without penalty. The loan must be repaid in full when the home is sold or transfered to another owner.”
The province says in order to be eligible, buyers must be pre approved for an insured high-ratio first mortgage. Upon completion of the sale, program funds will be advanced and the loan will be registered as a second mortgage on the property’s title.
The “B.C. Home Owner Mortgage and Equity Partnership program” will start accepting applications Jan. 16, 2017.