I've received questions since last week from some of you about the latest First Time Buyer Down Payment Loan Program so I've decided to highlight the eligibility requirements. In order to qualify, you must meet ALL requirements listed:
• Have saved a down payment amount at least equal to the loan amount for which they are applying from government.
• Have been a Canadian citizen or permanent resident for at least five years.
• Have lived in B.C. for at least one year prior to the sale.
• Be a first-time buyer who has not owned an interest in any residential property anywhere in the world at any time.
• The home must have a purchase price of less than $750,000.
• The buyer must already be able to qualify for an insured high-ratio first mortgage for at least 80 per cent of the purchase price.
• The combined gross household income of all people on title must not be more than $150,000.
• The loan portion is up to $37,500, or five per cent of the home’s purchase price based on a maximum purchase price allowed of $750,000.
• Those who are first time buyer's who already signed a presale contract or are under contract for a presale and have NOT completed on the purchase meaning are NOT on title to the property as the building is NOT finished construction, are still eligible.
Though the loans are available for condos, townhouses or detached homes, please keep in mind the government loan portion is not entirely interest free for the term of the loan. The government would put a second mortgage on a property to reflect the amount it loaned, but not require any interest payments or payments on the principal for the first 5 years. After that, the 20-year repayment plan would be set at the prime lending rate plus 0.5 per cent, leaving the homeowner to pay back both the original mortgage and the down-payment loan at the same time.
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