Admittedly, Vancouver is one of the most expensive places to purchase real estate in Canada, but this also makes it one of the best investment opportunities as well. Plus, with Vancouver being the most sought out location in the world to live, and the benefits of BC’s NEW First-Time Homebuyers Loan, buying real estate in Vancouver has become an amazing investment opportunity for all!
That being said, coming up with a down payment as a first-time homebuyer can be difficult, largely due to these higher than average home prices, which is why the BC government has put into place the first-time homebuyers loan, which I want to help you understand.
Understanding BC’s First-Time Homebuyers Loan
Premier Christy Clark announced a provincially backed loan program this past week, one that would equally match a first-time homebuyers down payment up to the amount of $37,500 – or 5% of the purchase price of the home.
In an attempt to help first-time buyers in Vancouver offset the down payment of their first home, this loan program comes at a great time as many people are looking to get out of the inflated rental community and into the homeowners club!
Criteria to Qualify for the First-Time Homebuyers Loan
This new loan incentive, known as the B.C. Home Owner Mortgage and Equity Partnership program, is available to Canadian citizens or permanent residents who have never previously owned a property and apply to homes worth less than $750,000.
You will need to pre-qualify for a mortgage and earn less that a $150,000 within your household in order to qualify, but the added benefit of this loan is that you will not be required to pay back the loan, nor will it generate any interest for the first five years. After this time the 20-year repayment plan will be put into action, collecting on the prime lending rate plus 0.5% will be added.
The Interest-Free First-Time Homebuyers Loan begins taking applications as of January 16, 2016, with an end-date for the program planned for March 31, 2020.
Although there has been some concerns raised about the program, the overall feedback has been positive, and it is left up to Vancouver homebuyers whether or not this loan program will work within their budget – both now, and upon payback time.
Personally I think this is a step in the right direction for Vancouverites looking to buy into the Vancouver condo market as a first-time buyer, one that I would love to help you pursue, getting you out of the inflated rental market and into something more affordable – owned by YOU for 2017!