Down Payment Loans for First Time Buyers
i'm so excited
This has to be one of the biggest announcements for BC real estate ever made!
Premier Clark and Minister Coleman's announcement is going to change things for first-time home buyers in a big way.
AND I MEAN BIG
This new policy is perfectly aligned with the needs of BC home buyers. Mainly because it speaks specifically to the housing market realities of our province.
Coming on the heels of the federal mortgage rule changes - which pushed a lot of first time buyers without significant funds out of the running to buy a home - the BC government's announcement said to the hard working people of BC; we hear you and we're going to address the real estate affordability gaps in a way that will create relief.
And that makes me really really happy!
props to the government
I've long believed there should be more programs put in place to help the people in our community get their foot in the door when it comes to home-ownership.
Saving up a big chunk of money while you’re busy living your life and keeping up with your monthly expenses can be daunting.
And it becomes especially daunting when prices seem to keep climbing year after year.
In working with so many of my clients, I've come to intimately understand that the biggest barrier to home-ownership for those who haven't yet taken the plunge is coming up with the initial downpayment.
It's crazy to know that most people in Victoria, BC are paying more money to rent their current homes than the average cost of a mortgage, property taxes and strata fees combined.
THIS IS HUGE
I can think of so many families - and the lovely people I know - who will personally feel the positive impact of this new real estate policy. It will not only help people save thousands of dollars on rent, it will also empower families to begin the journey to building equity and wealth.
the down and dirty details
Want to know all the info? Simply click here for details of the official announcement.
A FEW KEY POINTS
This is no half measure.
They are willing to put up the full 5% that most lenders require as a down payment - up to $37,500.
That's the equivalent of a down payment on a home-purchase up to $750,000.
Unlike when the province increased the Property Transfer Tax threshold to $475,000 which - let's face it - can't buy much in Victoria or Vancouver, these numbers really show genuine understanding of house prices in BC's urban centres.
It's interest-free and payment-free for the first five years!!!!
You just read that correctly.
Unlike the 0% mortgages offered by lenders in the early 2000s, the government is giving first-time home buyers some breathing/saving room for the first five years of the loan.
That's better than the break on most student loans!
Recipients of this grant will not be in negative equity from day one.
The only other loans with such favourable terms usually come from the bank of parents and the reality is, not all parents can afford to help out in this way.
After the first five years, repayment of the loan will be spread out over the 20 years remaining on the mortgage. This is also great because long amortization periods are what make borrowing large mortgage amounts affordable.
If you sell your house at any point, you'll need to repay the loan - which makes sense.
This is a great opportunity for first-time buyers to get into the market and build equity.
I'll leave you with one of my favourite quotes from one of my favourite books - The Alchemist by Paolo Coelho...
Maybe now is your time. If you'd like to find out how this new policy will apply to you specifically there's no time like the present to take my mortgage challenge. Click here to take the challenge today and keep checking back for updates as we see how the new program will be adapted by various lenders.
And... when you want something, all the universe conspires in helping you to achieve it.
Maybe now is your time!
If you'd like to find out how this new policy will apply to you, there's no time like the present .