Last week Premier Christy Clark unveiled a program to help first-time home buyers get into the market. As we know, the past few months have been a hard time for anyone to get into the market, especially first-time buyers when it comes to saving enough for a down payment.
A new program called BC Homeowner Mortgage and Equity allows first-time home buyers to obtain a mortgage of at least 80% on a home that costs no more than $750,000 on the condition that the combined household income is no greater than $150,000 and you’ve lived in Canada for at least five years (and one full year in BC).
The province will begin accepting applications on January 16, 2017.
“This program will boost sales to first-time home buyers. Without question, they’ll take advantage of it wherever they can,” said Helmut Pastrick, Central 1 Credit Union chief economist.
The province estimates this initiative will help at least 42,000 buyers or households province-wide over the next three years. About half of these buyers will be in the Lower Mainland, according to Pastrick.
The government will match your down payment up to $37,500 toward the house and you won’t pay interest for five years. After that, you will either have to repay the loan or transfer it to your mortgage to be paid over the next 25 years at the current interest rates.
The BC government intends to help at least 42,000 buyers over the next three years with this program. This will be a significant boost to our local market.
If you have any other questions about this program or about the local market, give us a call or send us an email. We would be happy to help you!