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.