The B.C. Home Owner Mortgage and Equity (HOME) Partnership program, the new provincial government initiative aimed at helping eligible first-time homebuyers enter the market, is now accepting applications.
As of January 16, 2017, first-time homebuyers can apply for a loan that matches their personal down payment up to 5% of the home purchase price—with $37,500 as the maximum loan amount based on a purchase price of $750,000. The program applies to purchases that close on or after February 15, 2017.
The program assists British Columbia residents who are eligible first-time homebuyers by providing repayable down payment assistance loans.
One of the key features of the program is that the provincial government is providing a 25-year loan that is interest-free and payment-free for the first five years.
This interest-free loan will add to the amount qualified first-time homebuyers have already saved for their down payment.
Another key feature of the program is that it will only be available to those first-time homebuyers who qualify for a high-ratio insured mortgage from an approved lending institution. Eligible applicants will also have had to meet the tightened new “stress testing” rules introduced by the federal government.
The goal of the new provincial government program is to make buying a first home a little easier. Buying that first home is major undertaking, where increasingly parents, grandparents, extended family and even friends are there to lend a helping hand.
Knowing the importance that British Columbians place in owning their own home, the provincial government is doing its part by helping first-time buyers with the down payment.
In fact, the program has the potential to help approximately 42,000 people become homeowners over the next 3 years.
That’s why the B.C. government is investing over $700 million in the B.C. HOME Partnership program over the next 36 months.
The program is focused on helping make home ownership more affordable by assisting first-time homebuyers with their down payment, and potentially lowering their monthly costs for the first five years they own a home. All the while this will also help first-time homebuyers build a bit of a nest egg: some savings to either go towards paying the B.C. HOME Partnership loan off in the future or to go to other needs they may have in their life.
Here’s how the program works. If an application is accepted, one will receive confirmation of pre-approval and a Homebuyer’s Package, which will include detailed information on the steps one is required to take in order to receive the B.C. HOME Partnership loan.
The Homebuyer’s Package also includes information packages for one’s real estate licensee, lender or mortgage broker, and lawyer or notary public. This will assist these professionals with understanding B.C. HOME Partnership requirements.
Approved applications will then work with their real estate licensee to find a home and make an offer.
Once the homebuyers’ offer is accepted, they will need to provide BC Housing with a copy of the Contract of Purchase and Sale (CPS) and details on the home being purchased.
BC Housing will then provide the approved applicant with a loan approval letter to take to their primary lender to finalize financing.
This is a partnership program that is the direct result of a strong economy designed to benefit British Columbia residents in communities across the province, and is another important way the B.C. Government is taking action on housing affordability.
To learn more about the B.C. HOME Partnership program and how it could help, please visit http://housingaction.gov.bc.ca/ and https://www.bchousing.org/
