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

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.

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A donated towel warms a merlin chick. Photo supplied
MARS Moment: 2021 shaping up to be a record-setting year for animal rescues

Submitted by Jane Sproull Thomson Special to Black Press With the pandemic,… Continue reading

A 41-person air task force, including 12 members from 407 Long Range Patrol Squadron at 19 Wing Comox, seized more than $3 million CND worth of cocaine as part of Op Caribbe. Photo by Canadian Armed Forces Operations/Facebook
19 Wing Comox crew involved in three-tonne cocaine seizure worth more than $293 million

12 members from 407 Long Range Patrol Squadron involved in Op Caribbe

File photo of Gord Johns during World Oceans Day.
Courtenay-Alberni MP outlines priorities for federal budget

Universal pharmacare, affordable housing and Pacific wild salmon are some of the… Continue reading

RCMP display some of the fish seized from three suspects who pleaded guilty to violating the Fisheries Act in 2019, in this undated handout photo. THE CANADIAN PRESS/HO - RCMP
3 banned from fishing, holding licences after overfishing violations in Gold River area

Mounties seized the group’s 30-foot fishing vessel and all equipment on board at the time

Volunteers sort through bottles and cans during Saturday's fundraiser for hospice. Photo by Mike Chouinard
Comox Valley hospice holds drive-through bottle drive

Bike team is fundraising for the annual Cycle of Life tour on Vancouver Island

Burnaby MLA Raj Chouhan presides as Speaker of the B.C. legislature, which opened it spring session April 12 with a speech from the throne. THE CANADIAN PRESS
B.C. NDP promises more health care spending, business support in 2021 budget

John Horgan government to ‘carefully return to balanced budgets’

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

A lady wears a sticker given out after receiving a COVID-19 vaccine at a clinic in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS
B.C.’s COVID-19 case count slows after last week’s peak

3,219 new cases since Friday, 18 additional deaths

North Cowichan councillor Tek Manhas did not violate the municipality’s code of conduct by posting a sexist meme on Facebook, council concludes. (File photo)
B.C. municipality to take no action against councillor who posted sexist meme

Tek Manhas’s meme doesn’t violate North Cowichan council’s code of conduct, municipality concludes

NIC’s new president Lisa Domae assumed the role April 12. Domae has worked at NIC since 2000, most recently as executive vp academic and chief operating officer. Photo supplied
New North Island College president launches draft strategic plan

North Island College’s new president, Lisa Domae, kicked off her first official… Continue reading

Killer whales surface near Sebastion Beach in Lantzville on Sunday, April 11. (Photos courtesy Ella Smiley)
Chainsaw and friends near the beach thrill orca watchers in Lantzville

Jagged-finned orca named Chainsaw and 17 others spent hours off Sebastion Beach this weekend

Nootka Sound RCMP and DFO Conservation and Protection Officers seized this 30 foot vessel, fishing gear and equipment as well as Chinook salmon, salmon roe, rock fish and ling cod after an investigation on Sept. 11. A judge in Campbell River on February hit the owner and his accomplices with significant fines, a ban on holding fishing licences and loss of equpment, including the boat’s motor and trolling motor. RCMP photo
Washington State trio’s fisheries violations the worst veteran officer has seen in 20 years

Judge bans three men from fishing or holding a fishing licence anywhere in Canada

—Image: contributed
Indoor wine tastings still allowed in B.C., not considered a ‘social gathering’

“Tasting is really just part of the retail experience. The analogy I use is you wouldn’t buy a pair of pants without trying them on.”

A sign on a shop window indicates the store is closed in Ottawa, Monday March 23, 2020. The Canadian Federation of Independent Business is raising its estimate for the number of businesses that are considering the possibility of closing permanently. THE CANADIAN PRESS/Adrian Wyld
Small business struggling amid COVID-19 pandemic looks for aid in Liberals’ budget

President Dan Kelly said it is crucial to maintain programs to help businesses to the other side of the pandemic

Most Read