BC H.O.M.E. Partnership Program – some more details

On December 15th, 2016, the Provincial Government of British Columbia announced a Homeowner Mortgage and Equity (HOME) Partnership Program to assist first time homebuyers residing in B.C. to enter the housing market. This Program contributes to the amount first-time homebuyers have already saved for their down payment, matching up to $37,500, or up to 5% of the purchase price, with a 25-year loan that is interest free and payment-free for the first five years. After the first five years, homebuyers will repay the loan over the remaining 20 years. The Program will begin accepting applications on January 16, 2017, for purchases of homes that close on or after February 15, 2017.

To be eligible under the BC HOME Partnership Program, all individuals on title must meet specific eligibility criteria. To ensure your client qualifies, please refer to the Province’s website for further background and program eligibility criteria.

Effective January 16th, 2017, Synergy Mortgage will begin accepting mortgage applications, which is the first step prior to applying with with the BC HOME Program.

The downpayment will be treated as a non-traditional source and the following mortgage insurance premium table applies:

5% down payment   –  3.85% one time premium
10% down payment – 3.60% one time premium
15% down payment – 1.80% one time premium

Borrowers must pass the stess test as well as the following:

· A copy of the BC HOME loan commitment MUST BE PROVIDED PRIOR TO FUNDING
· The BC HOME loan will be treated as a liability with a monthly payment calculated using the Bank of Canada Benchmark qualifying rate amortized over 20 years, TDS must be <44%
· Minimum beacon score >650
· Total down payment, including the BC HOME loan, must be less than 20% of the total purchase price.

If you have any questions about the program or would like more details on the interest rate set at a fixed rate on the 5th anniversary please contact our office.