As of Jan. 16, 2017, British Columbians looking to purchase their first home can apply to the B.C. Home Owner Mortgage and Equity Partnership program, which helps first-time homebuyers create secure and stable futures for their families through home ownership.

The B.C. HOME Partnership is designed to help first-time homebuyers who can afford the costs of home ownership, but are experiencing challenges with the initial step in entering the market – that is, getting together a down payment.

The goal of the program is to help more British Columbians establish a nest egg and ensure the dream of home ownership remains in reach for families. The program contributes to the amount first-time buyers have already saved for their down payment, providing up to $37,500, or up to 5% of the purchase price, with a 25-year loan that is interest-free and payment-free for the first five years.

As reported by the Real Estate Board of Greater Vancouver in their December 2016 statistics, in Coquitlam, the benchmark price for an apartment is approximately $346,900. If a first-time buyer saves $8,672 towards their down payment, or 2.5% of the home’s purchase price, the Province will contribute $8,672, equal to the buyer’s 2.5% down payment. This brings the total down payment to $17,345 or 5% of the home’s purchase price, as required by Canada Mortgage and Housing Corporation.

Under the B.C. HOME Partnership program, homebuyers must first qualify for an insured high-ratio mortgage, to ensure they can afford payments both today and in the future.

Applications are now being accepted for purchases that close on or after Feb. 15, 2017.

Quotes:

Port Moody-Coquitlam MLA Linda Reimer –

“Home ownership is an important goal for many British Columbians. By assisting first-time buyers we’re ensuring that saving up enough for a down payment becomes less of a challenge for families and individuals who want to enter the market.”

Sharon Davis, mortgage planner/partner, Dominion Lending Centres - Innovative Mortgage Solutions –

“This new government initiative is a great opportunity for those first-time homebuyers who have the means to afford a mortgage, but are struggling to save their down payment. Many people qualify for a mortgage – but they just can’t come up with the large amount of savings needed to get to that first 5%, and not all are fortunate enough to have parents lend a hand. If we can help renters get into the market a few years earlier, it’s not only great for them, but it may also help alleviate all the pressure on the rental market. This is great opportunity for first time home buyers realize their dream of homeownership sooner than later.”

Key Facts:

• Through the B.C. HOME Partnership program, the Province is investing about $703 million over the next three years to help an estimated 42,000 B.C. households enter the market for the first time.
• The Province’s commitment to housing action is driven by six key principles:
  • Ensuring the dream of home ownership remains within the reach of the middle class
  • Increasing housing supply
  • Smart transit expansion
  • Supporting first-time homebuyers
  • Ensuring consumer protection
  • Increasing rental supply
• The B.C. government has committed $855 million over five years, including $575 million in 2016-17, to support the construction or renovation of 4,900 units of affordable housing throughout the province.
• Since 2001, the B.C. government has invested $4.9 billion to provide affordable housing for low income individuals, seniors and families.
• More than 104,000 B.C. households benefit from a diverse range of provincial housing programs and services.

Learn More:

To learn more about the B.C. Home Owner Mortgage and Equity Partnership program and how to apply, please visit: www.bchousing.org/housing-assistance/bc-home-partnership/program-overview-applicant-information

B.C. Home Owner Mortgage and Equity Partnership program, BC Housing:
Phone: 604 439-4727
Toll Free Number: 1 844 365-4727

To learn more about the Province's actions on housing affordability, visit: http://housingaction.gov.bc.ca/

A backgrounder follows.