This morning (Dec. 15, 2016) the B.C. government announced the BC HOME Partnership to assist first-time homebuyers cover part of the cost of a mortgage down payment. Here are the top 10 things you need to know about the BC Home Owner Mortgage and Equity (HOME) Partnership Loan:
- The program begins on January 16, 2017 and will run for three years. The home purchase must close on or after February 15, 2017.
- The loan will match a buyer's down payment contribution dollar-for-dollar, to a maximum of 5% of the purchase price (up to a $750,000 property).
- The homebuyers must be Canadian Citizens or have Permanent Resident status in Canada for at least 5 years AND have lived in BC for the full 12 months previous to applying for the loan.
- Only first-time homebuyers who are pre-approved for a high-ratio insured (less than 20% down payment) first mortgage are eligible. The pre-approval can be conditional on receiving the BC HOME Parternship Loan.
- All individuals who will be on title must be first-time homebuyers.
- The home must be the primary residence for all individuals on title for the first 5 years after purchasing.
- The BC HOME Partnership Loan will be registered on the property title as a second mortgage.
- The first five years of the loan is interest and payment free. The initial interest rate will be outlined in the Conditional Loan Approval letter and will take effect on the fifth anniversary (year 6 of the loan). At this point, the homebuyer will be required to make monthly payments (principal and interest) amortized over the remaining 20 years of the loan. The interest rate will be reset at the Royal Bank of Canada Prime Rate plus 0.5% at each of the 10th, 15th and 20th anniversary dates.
- The loan is a non-traditional source of down payment and so may be subject to higher CMHC fees.
- The BC HOME Partnership Loan must be repaid in full if a person is added to title.
BC Housing currently estimates 5 business days processing time to evaluate applications, so additional time may be required for subject removal.
If you have questions about what this program means for you, contact Auxilium Mortgage today for a free consultation with one of our brokers: call Toll-Free 1-855-590-6520 or visit us at 307 Goldstream Avenue during regular business hours, Monday through Friday 8:30 a.m. – 5:00 p.m. We can also arrange an appointment evenings or weekends to work with you.
Auxilium Mortgage Corporation is based in Victoria, BC and works with clients locally and across Canada. The Auxilium team has over 100 years of combined financial experience and access to dozens of lenders to help you meet your goals.