As you’ve probably heard, the BC Government will lend first-time homebuyers up to 5% of the purchase price to use as a downpayment to a maximum of $37,500.

There are many details still to be clarified - below is our understanding of the new regulations. However, we’re not mortgage experts, so please consult your mortgage professional to verify the information below.

For the first 5 years, the loan is interest-free and re-payments don't start until year 6. While the first five years is interest and payment free, the homeowner may make additional payments or repay the loan in full at any time with no penalty. 

At the beginning of the sixth year, interest will start accruing and the homeowner will begin making principal and interest payments, amortized over the remaining 20 years. Here is a summary of the program. As well, below there are links to the government website with further information, an FAQ and further details.

  • First-time home buyers only.
  • Must be used as Principal residence for 5 years. If rent property in first 5 years, the loan would be paid back to the government.
  • Purchase price under $750,000.
  • Must be a CMHC insured mortgage i.e. downpayment less than 20%.
  • The BC loan will go in 2nd position on title.
  • Must have a mortgage pre approval in place.
  • Annual combined income of applicants cannot exceed $150,000.
  • Have saved a downpayment amount at least equal to the loan amount for which the buyer applied (“gifting” is likely allowed).
  • Income confirmation and consideration of existing debts and credit score will still be the main determinant for mortgage approval.
  • Have been a Canadian citizen or permanent resident for at least five years.
  • Have resided in British Columbia for at least one year immediately preceding the date of application.
  • Be a first-time buyer who has not owned an interest in a residence anywhere in the world at any time.
  • Applications for the program will commence on January 16, 2017 and it runs until March 2020 (Completion dates on or after February 15, 2017).

Here are a couple of links with more information:

If you have questions, need a good mortgage broker, or want helping purchasing your first home, please let us know.