First-time homebuyers in British Columbia may now apply for an assistance loan of up to a maximum of 5% of the purchase price.
The term of the loan is 25 years and it is interest and payment free for the first 5 years. The loan is secured on title as a second mortgage.
All registered property owners must meet the following requirements:
- They must have been citizens or permanent residents of Canada for the last 5 years
- They must have been residents of British Columbia for the last 12 months
- They must meet the definition of first-time homebuyers, i.e. have not owned an interest in a principal residence anywhere in the world at any time and has never received a first-time homebuyers’ exemption
Additionally, the following requirements must also be met:
- The purchase price of your home must be less than $750,000.00
- You must be pre-approved for a high-ratio (a down payment of less than 20% of the purchase price) insured 1st mortgage for the home
- The combined annual income of all registered owners must be less than $150,000.00
- All registered owners must use the home as their principal residence for the next 5 years
It should be noted that the amount of the loan will match your down payment up to 5% of the purchase price of your home. For example, if the purchase price of your home is $600,000 and you are able to put down 5% ($30,000), then the amount of the loan will also be $30,000, and the total amount available for your down payment will then be $60,000 or 10% of the purchase price.