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B.C. Home Owner Mortgage and Equity Partnership Program

Effective January 16, 2017 the province of British Colombia will provide a Home Owner Mortgage and Equity Partnership Program to support first time homebuyers with the purchase of their first home. As part of the program, the B.C. government will match the down payment being contributed by the new homebuyers (up to 5% of the purchase price to a maximum of $37,500). This will be in the form of a 25 year BC Government administered loan with no interest or payments required for the first 5 years.Some other points to be aware of:1)  the applicants will need a pre-approval letter from either their bank or their mortgage broker in order to apply for the loan.  Loan approval is expected to take approximately 5 days;2)  minimum of 14 days (10 business days) required to fund the loan after final approval (subject removal);3)  gifted funds for the applicants portion of the down payment will be allowed;4)  there is no interest for the first five years, but immediately at year six the applicant will be required to either pay the loan in full, or make monthly payments to a maximum of 20 years.  The interest rate is re-set every five years. Continue reading