Interest-free and payment-free down payment loans available soon
The B.C. government announced on Thursday, December 15, 2016 that it will start offering interest-free loans to help first-time home buyers toward their down payment.
Under the program, First-time home buyers will soon be able to access 25-year down payment loans of up to $37,500, or 5% of the purchase price, that are interest-free—and payment-free—for the first five years. Furthermore, the home must remain the home buyer’s principal residence for the first five years to keep the loans interest- and payment-free over the period. After this point, homeowners will make monthly payments at current interest rates for 20 years. The loan can be repaid in full without penalty at any time, but the full amount must be repaid when the home is sold or transferred to another owner.
Among other eligibility requirements, the maximum purchase price of a home that qualifies for the loan is $750,000, and the combined income of applicants must not exceed $150,000.
The program has received mixed reviews since it was unveiled. Applications will be accepted starting on January 16, 2017. For more information, read the full article here.