Are you planning on buying your first home and exploring financing options? Then, you need to read up on BC’s first-time homebuyers loan programme. Here’s what you need to know:
The programme took effect in January 2017 and will run for three years, granting eligible candidates with a loan to help them enter the housing market for the first time. BC Housing announced in April that they’ve already received 1,200 applications and granted a total of $5.3 million in loans to BC residents with more money on the way.
There are a number of stipulations for receiving the loan, namely the residence must be used as the homebuyer’s principal residence for the first 5 years and must not exceed $750,000. That means vacation homes don’t count, sorry weekend getaway! As well, the buyers must be a Canadian citizen or Permanent Resident for 5 years or more and have lived in BC for at least one year. They also need to have a combined gross income of $150,000 or less.
In order to qualify, homebuyers must have already received a first mortgage approval and have saved up at least 50% of their minimum down payment on their own. Similar to a regular mortgage, the BC Housing loan can be up to a 25 year term, and would be registered to a second mortgage to supplement the first.
If homebuyers break terms within the first 5 years, such as moving out of their home or selling, or default on their mortgages, they will be required to pay the loan full straight away.
When buying a home, it’s always a good idea to do your research to see what your options are. Don’t be afraid to ask plenty of questions and chat with others who have been through the process. Hearing first-hand accounts from people in a similar position can help you gauge whether this is the right fit for you. For more information on the housing loans, visit bchousing.org. Government policies are subject to change, so I also recommend going right to the source at BC Government website.
Looking outside of the Metro Vancouver area? Why not give the Sunshine Coast a try? Contact me for a consultation.