First Time Home Buyers
Premier Christy Clark this morning announced a new program designed to support first time homebuyers.
Meeting the press today, Clark referred to the difficulty first time home buyers experience saving up a down payment. While many first time home buyers qualify for a mortgage, they can't assemble funds required for their initial down payment.
Interest & Payment Free for first 5 Years
The BC Home Owner Mortgage and c contributes to the amount first-time homebuyers have already saved for their down payment, providing up to $37,500, or up to 5% of the purchase price, with a 25-year loan that is interest-free and payment-free for the first five years.
During the first five years, no monthly interest or principal payments are required as long as the home remains the homebuyer's principal residence. After the first five years, homebuyers begin making monthly payments at then current interest rates. Homebuyers will repay the loan over the remaining 20 years, but may make extra payments or repay it in full at any time without penalty. The loan must be repaid in full when the home is sold or transferred to another owner. The maximum purchase price of a home that qualifies for the loan is $750,000.
This three year program starts on January 16th, and will use funds raised from Property Transfer Taxes.
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