Some Key Information for the First time Buyer's Loan Program
By now most of you will have heard that the British Columbia government is providing matching low interest loans to first time buyers. This is a remarkable opportunity for many that have been able to save but perhaps not have quite enough for a downpayment. Here are the details:
To qualify, buyers must:
- Be buying their first home;
- Obtain a high-ratio, insured first mortgage for at least 80 per cent of the purchase price;
- Have a combined gross household income not exceeding $150,000;
- Have saved a down payment amount at least equal to the loan amount;
- Be a Canadian citizen or permanent resident for at least five years; and
- Have lived in BC for at least the full year preceding their application.
The loans will match a home buyer’s contribution to a down payment up to five per cent of the home’s purchase price.
The maximum purchase price to qualify for a loan is $750,000 (excluding taxes and fees).
After five years, buyers can either repay their loan or enter into monthly payments at current interest rates.
Loans through the program are due after 25 years.
The loans will be due in full if the buyer defaults on a payment, ceases to use the home as a principle residence or resells the home.
While this program can be a boon to the right person, it's always good to exercise caution when taking on large amounts of debt. As always, I'm happy to chat with you about how to make this new program work for you! Call me at 604-885-4313.