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

Victoria teen killed on field trip near Sooke

Second youth also injured in falling tree incident at Camp Barnard

Scorpion gives birth at Victoria Bug Zoo after hitching ride in woman’s luggage

A Vancouver woman inadvertently brought the animal home from a trip to Cuba

Oak Bay double murder trial: Blood splatter analyst says no shoe prints found in unit

RCMP analyst testifies to smears, fingermarks, ‘swipe and wipe’ patterns around apartment

Final bell could sound for project that allows Victoria grads to dress in style

Magic Wand must find space to store its prom attire for Greater Victoria students by end of June

Man accused of Brentwood Bay murder appears in court

Alan Chapman tells judge he wants next court appearance to be “as far away as possible”

VIDEO: ‘Avengers: Endgame’ to be re-released with new footage

‘Avatar’ holds global box office record at $2.788 billion, while ‘Endgame’ stands at $2.743 billion…

POLL: Do you support the government’s decision to approve the Trans Mountain pipeline expansion?

The federal government announced Tuesday its approval for the Trans Mountain pipeline… Continue reading

Greater Victoria wanted list for the week of June 18

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Elias Pettersson wins Calder Trophy as NHL’s top rookie

Vancouver forward first Canuck to win award since Pavel Bure in 1992

FVRD chair calls B.C. incineration plan for Philippines waste ‘disturbing’

Metro Vancouver ‘uniquely capable’ of safely disposing of waste coming back to Canada, say officials

VIDEO: Acknowledging skeptics, finance minister vows to build Trans Mountain project

Bill Morneau said he recognizes ‘huge amount of anxiety’ in Calgary over future of oil and gas sector

Shovels could be in the ground on Trans Mountain by September, CEO says

Ian Anderson points to weeks likely required for NEB to reinstate 2016 regulatory record

RCMP allows officers to grow beards

Members can now wear beards and goatees, as long as they’re neatly groomed

Girl, 10, poisoned by carbon monoxide at B.C. campsite could soon return home

Lucille Beaurain died and daughter Micaela Walton, 10, was rushed to B.C. Children’s Hospital on May 18

Most Read