The new BC HOME Partnership Program (the Program) starts January 16, 2017.
The BC program has the BC Government contributing an amount to first time home buyers who have already saved up for their down payment, matching up to 5% or $37,500 of the purchase price.
This is a 25 year loan that is interest AND payment free for the first 5 years. After 5 years, a home buyer would have to repay the loan amortizing over 20 years.
For complete rules on your applicable status, check out our Interest Free Loans Explained page.
5 Steps to Your Application
1. Get a Pre-approval from your Mortgage Broker.
This pre-approval needs to show that you will have mortgage insurance.
2. Apply to the Program and receive confirmation of eligibility.
The BC HOME Partnership application takes about 15 minutes to complete and about 5 business days for confirmation.
Supporting Documentation will be:
- Provide one of: CDN birth certificate or PR Card or Citizenship Card
- Provide one piece of government-issued photo ID.
- Provide proof of income by way of Notice of Assessment.
- Provide pre-approval for high-ratio mortgage.
Once your eligibility has been confirmed, please give this document to your mortgage broker.
3. Find your Home – Make an offer “Subject to Financing”
With this program, there are no pre-approvals, buyers only receive a confirmation of eligibility.
We are told that we will need a minimum of 5 business days for both the lender and BC government to approve the mortgage and home you want to buy.
4. Apply back to the the Program and lender with your accepted offer.
You will get your final approval for this insured mortgage from the program, lender and insurer. Remember, expect a 5-day turnaround.
Your approval will have conditions attached
5. Upon funding, the lawyer/notary will register the loan as a second mortgage.
It’s important to note that the Program legal costs will be paid by the new home buyer. We don’t know what this will be yet but they will be disclosed to the home buyer upon approval.
Beneficial for some, not for others
This is a great program for some people. So far, for those who can afford it and are taking large loans, this can be a very financially prudent move. Stay tuned for more.