Canada: The government of British Colombia looks to help first time buyers

The government of British Colombia is offering interest-free loans of up to $37,500 to first time home buyers to help them cover the cost of a mortgage down payment. This loan will be provided by the Home Owner Mortgage and Equity Partnership program for a period of 25 years of which the first five years will be interest and payment-free. The rate for the remaining 20 years will be set according to the prime lending rate with an additional 0.5%. This down-payment loan will then have to be paid back at the same time as the home loan.

The program will be available to any Canadians who have not previously owned a home outright and who are looking to buy a condominium, townhouse or detached home worth less than $750,000. Nonetheless, an eligible home buyer must be able to pre-qualify for a mortgage and have less than CAD$150,000 in gross household income per annum. Applications for the program opened on January 16, and the program will run until March 31, 2020.

Upcoming Events
See all upcoming events
Subscribe to receive insights delivered straight to your inbox
Latest news, unbiased expert analysis and insights across banking and finance