Down Payment Assistance (BC)
Update Feb 21, 2018 - Program is being eliminated. Receiving application until March 31, 2018. If a Pre-Approval is received by this date they will give you until September 2018 to make an offer on a home.
BC Home Owner Mortgage and Equity Partnership Program
For many British Columbians dreaming of buying their first home, the hardest step is saving for a down payment.
That is why the Province is partnering with British Columbians to help make that dream come true, through the B.C. Home Owner Mortgage and Equity (HOME) Partnership program.
Here is how it works:
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The B.C. HOME Partnership program contributes to your personal down payment up to a maximum of 5% of the purchase price to a maximum purchase price of $750,000
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The loan is for an initial 25-year term, which is interest and payment free for the first five years. The loan will be registered on your property title as a second mortgage
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After five years, buyers can either repay their loan or enter into monthly payments over the remaining 20 years amortization at current interest rates
Example 1
Home price
$480,000
Minimum down
payment required
$24,000
Your personal down payment $12,000 (2.5%)
BC HOME Partnership loan $12,000 (2.5%)
Total down payment towards your new home $24,000 (5%)
Example 2
Home price
$600,000
Minimum down
payment required
$35,000
Your personal down payment $30,000 (5%)
BC HOME Partnership loan $30,000 (5%)
Total down payment towards your new home $60,000 (10%)
Example 3
Home price
$750,000
Minimum down
payment required
$50,000
Your personal down payment $52,500 (7%)
BC HOME Partnership loan $37,500 (5%)
Total down payment towards your new home $90,000 (12%)
How does the repayment work?
While the first five years is interest and payment free, you 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 you will begin making principal and interest payments, amortized over the remaining 20 years.
The BC HOME Partnership loan is due and payable in full upon any of the following:
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Default on the first mortgage or the BC HOME Partnership loan.
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Transfer of the home or change of ownership (including addition of a person to title).
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The home is no longer your principal residence in the first five years.
Am I Eligible?
To qualify for the program, all individuals with a registered interest on title must reside in the home and:
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Have been a Canadian citizen or permanent resident for at least five years
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Have resided in British Columbia for at least one year immediately preceding the date of application
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Be a first-time homebuyer who has not owned an interest in a principal residence anywhere in the world at any time and has never received a first-time homebuyers' exemption or refund
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Use the property as their principal residence for the first five years
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Purchase a home that has a purchase price of $750,000 or less (excluding taxes and fees)
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Obtain a high-ratio insured first mortgage on the property for at least 80% of the purchase price
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Have a combined, gross household income of all individuals on title not exceeding $150,000
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Have saved a down payment amount at least equal to the loan amount for which the buyer applied
What information is needed to apply?
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Proof of status in Canada and residency in British Columbia
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Secondary identification (must include your photo)
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Proof of income and tax filings
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Insured first mortgage pre-approval
....The Mortgage Duo will be there to assist you with this process
How to apply
Step 1: Come see The Mortgage Duo to get your pre-approval for an insured first mortgage
Step 2: We will assist you in applying to BC Housing for the Home Owner Mortgage and Equity (HOME) partnership loan.
Step 3: Find your home
Applications for the program will be accepted starting Jan. 16, 2017, for purchases that will close on or after Feb. 15, 2017.