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 Fraser Valley Real Estate Board in their December 2016 statistics, in Mission, the benchmark price for a townhouse is approximately $336,500. If a first-time buyer saves $8,413 towards their down payment, or 2.5% of the home’s purchase price, the Province will contribute $8,413, equal to the buyer’s 2.5% down payment. This brings the total down payment to $16,826 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:

Maple Ridge-Mission MLA Marc Dalton –

“The down payment can be the single biggest hurdle first time buyers face in purchasing a home. This program provides extra support to those who qualify for a mortgage but need help taking that important first step.”

Doug Lifford, mortgage broker/owner, Doug Lifford Mortgage Services –

“The BC HOME Partnership program could not have come at a better time and is positive news for many first-time homebuyers. This program will resonate in the Mission-Abbotsford-Chilliwack markets, where there is an abundance of quality starter homes under $750,000. The BC HOME Partnership program provides assistance to first time homebuyers who are still saving up their 5% down payment, but it can also assist those who have already saved their 5%. Since the government matches their personal contribution to a maximum of 5%, it provides first-time homebuyers who already have their down payment saved with the opportunity to take some of their savings and use it to payoff high-interest consumer debt – thereby further improving their financial position.” 

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.