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, the benchmark price for an apartment in Vancouver is approximately $619,200. Canada Mortgage and Housing Corporation requires a 5% down payment for the first $500,000, and 10% for the remaining portion. This means the minimum down payment required for a home valued at $619,200 is $36,920.

If a first-time buyer saves $19,000 towards their down payment, or roughly 3% of the home’s purchase price, the Province will contribute $19,000, equal to the buyer’s 3% down payment. This brings the total down payment to $38,000 or approximately 6% of the home’s purchase price, enabling the buyer to purchase their first home.

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:

Vancouver-Fraserview MLA Suzanne Anton –

“We want to help more British Columbians realize their dream of home ownership. Many first-time home buyers in my riding of Vancouver-Fraserview are young families looking to secure their future and this program will help them make that initial step into the market.”

Vancouver-Quilchena MLA Andrew Wilkinson –

“One of the main benefits of this program is to help eligible homebuyers move out of the rental market and into home ownership. This program will achieve that goal by giving them the support they need to make the all-important down payment.”

Reza Sabour, mortgage advisor and director with Canadian Mortgage Brokers Association of BC –

“The BC HOME Partnership program is good news for first-time homebuyers. It has the potential to help those people who need a little assistance with the down payment to get their first home. ”

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.