January 13, 2017
The BC Government Home Partnership Loan Starts Next Week; Here's What You Need to Know
You have likely read about the new initiative from the BC Government to provide down payment assistance.
I have included the government's link to all the details of the program (https://www.bchousing.org/housing-assistance/bc-home-partnership).
A handful of mortgage lenders have already decided to take part in the program but there are also a number of them that will not take part.
The program starts next week on Jan 16th and a first time home buyer will need to qualify for the mortgage + the loan for part of the down payment.
The qualifications for debt servicing is to take the loan amount at the current Benchmark rate of 4.64% over 20 years (the amortization for the loan is 25 years but there are no payments nor interest for the first 5 so 20 years needs to be used).
Max. loan amount for down payment is $37,500 and they will only match what one has in their own funds for down payment.
So even at the max loan amount amortized over 20 years impact a borrower's debt ratios to much.
We will likely see more lenders jump on board but it may take some time.
As always if you have any questions around this or any other home financing please feel free to email/text or call me anytime.