B.C. offers interest-free loans up to $37,500 to 1st-time homebuyers

December 19, 2016

Source: CBC

The B.C. government is offering to help first-time homebuyers cover the cost of a mortgage down payment with an interest-free loan.

The B.C. Home Owner Mortgage and Equity Partnership program will provide a maximum of $37,500 — or up to five per cent of the purchase price — with a 25-year loan that is interest-free and payment-free for the first five years.

"I think most people who have bought their first home can look back and remember how hard it was to make that down payment," said Premier Christy Clark. "We must make sure it is easier for first-time home buyers to find their way into a really tough housing market right here."

"Our B.C. government wants to be your partner, if you want to buy your first home."

The intention of the program is to assist people who can afford the mortgage payments on a new home but are challenged to make the down payment.

The province will start accepting applications for the program on Jan. 16, 2017.

Homebuyers will pay no monthly interest or principal payments over the first five years as long as the home remains their principal residence.

After the first five years, homebuyers begin making monthly payments at current interest rates.

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