B.C. to offer interest-free loans up to $37,500 to first-time homebuyers

Premier Christy Clark announced loan will apply to homes costing under $750,000.

First-time homebuyers in B.C. will be able to apply for an extra loan from the provincial government starting in the new year.

The loan, which will remain interest- and payment-free for five years, will match downpayment loans up to $37,500 on homes costing less than $750,000. Buyers must have the first half of their downpayment saved up and live within the home for the first five years.

“We must make sure that it is easier for first time homebuyers to find their way into a really tough market right here,” Premier Christy Clark told reporters on Thursday.

WATCH: Buying homes tough for millennials

She said the new three-year program, called the B.C. Home Partnership, expects to see 42,000 people apply, but that there is no cap on the number of accepted applicants accepted or the amount of available funding, which comes out of the property purchase tax.

After five years, the 25-year loan will turn into a market rate mortgage loan, at which point homeowners no longer need to have the property as their principal residence.

According to the regional real estate boards, the November benchmark price for single-family detached homes in both Metro Vancouver and the Fraser Valley is out of the $750,000 range of the program, at $1.5 million and $860,800 respectively.

The benchmark price for a townhouse in Metro Vancouver is $667,100 and $424,000 for the Fraser Valley. Benchmark apartment prices are $512,00 for Metro Vancouver and $258,600 for the Fraser Valley.

Applicants must first be pre-aproved for a mortgage from an approved lender – a guarantee, Clark said, that will ensure buyers don’t try to purchase homes that would otherwise be out of their reach.

“We’re helping people get over that up-to-$50,000 lump payment that they need to pay on a down payment,” she said. “We want people to become homeowners.”

But NDP housing critic David Eby said that the province was just creating a housing shortage and adding more debt to a demographic already “struggling with credit card debt, student debt, record levels of debt.”

Instead, Eby would like to see developments on government-owned land.

“The province has huge parcels of publicly owned land that they could do amazing developments on, to build housing that’s actually affordable, so they don’t have to take on more debt,” said Eby.

“They could be using leasehold, they could be using co-ops, but instead, in Vancouver, which is ground zero for this housing crisis, they’re selling off huge parcels of land, Oakridge, Jericho, Little Mountain.”

According to the province, all names on the title have to be first time homebuyers and must make a combined annual income of less than $150,000.

Applicants must have been Canadian citizens or permanent residents for at least five years and have lived in B.C. for at least one year.

B.C. Home Ownership Loans

 

 


 

@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

 

Just Posted

Man wants guilty plea revoked in 2012 collision in Abbotsford that killed Chilliwack woman

Michael Larocque was charged in relation to crash that killed Eileen Kleinfelder

Trial slated to start Monday for accused killer of Abbotsford cop

Oscar Arfmann faces first-degree murder for death of Const. John Davidson

George Ferguson Way apartment building goes to public hearing Monday

Bike lockers signal shift in Abbotsford developers’ thinking, Banman says

Agassiz study to look at drone use for pesticide application

The study will be the first in Canada to use drones to apply pesticides to farm fields

Abbotsford wasting time and money on ‘invalid’ surveys, UFV math prof says

Statistician says city can’t claim quality of life survey reflects opinions of Abbotsford residents

B.C.’s fight to regulate bitumen through pipelines to go to Canada’s top court

BC Appeal Court judges found B.C. cannot restrict bitumen flow along Trans Mountain pipeline

Scheer says it would take Conservatives five years to balance budget

Scheeraccused the Liberal government of spending $79.5 billion of previously unbudgeted funds

High-risk sex offender released into Surrey

Earon Wayne Giles, a Newton “tag-team rapist,” was released from prison Friday and is now living in Surrey

Vancouver woman sexually assaulted after man follows her home; suspect at large

Police are looking for an Asian man in his 40s after the incident on Vancouver’s east side.

B.C. man, 30, arrested for driving his parent’s cars while impaired twice in one day

The Vancouver-area man was arrested after officers caught him driving impaired twice in one day

UPDATE: Vancouver man dies after crash between motorcycle, transport truck

Police believe speed was a factor in Thursday collision

New airline regulations bring compensation for tarmac delays, over-bookings

Some of the new regulations will roll out in July, while others are expected for December.

Body found after fire at Surrey homeless camp, police say

Surrey RCMP say the body was found inside a shed after firefighters extinguished the fire

RCMP probe hit-and-run of Richmond senior

The man, who is in his mid-70s, was walking with his wife when he was allegedly struck

Most Read