The New HOME Program
You may have heard about BC Government’s new Homeowner Mortgage and Equity (HOME) Partnership Program. If you haven’t heard, it gives first-time homeowners a much-needed boost to their down payment. While it may be of help to some buyers, you have to pay attention to the details. As of earlier this week, January 16, applications are being accepted, so keep reading to learn more.
What HOME Offers
If the price of the home is under $750,000, you can obtain a loan equal to your down payment, with a cap of 5% of the home value. This means you can get a loan up to $37,500, interest and payment-free for the first five years. While there are similar programs already available, some buyers might be able to make use of those first five years interest-free.
The Fine Print
Before we go too much further, there are a few things to note:
- Interest and payments start after five years
- You must pay it off within 25 years
- This loan will be considered a second mortgage
- Your first mortgage needs to be insured
Your mortgage needing to be insured means that there’s going to be extra payments for the mortgage insurance. For more about mortgage insurance, click here.
Do You Qualify?
Of course, there are a few requirements and qualifications in order to be eligible for this loan. Fortunately, there is an easy-to-use calculator by BC Housing. You can check your qualifications.
If you’re curious about whether or not you qualify, let me know and we can talk about what the next steps should be. As your mortgage consultant for life, I’m here to guide you in making the right financial choices for you.