In December, the BC Government announced a program that will help first time buyers get into home ownership.
Currently statistics show that it takes 16 years for a typical young Canadian to save a 20% down payment on an average home. This new program helps cut down this time and is a down payment support incentive.
KEY THINGS TO KNOW ABOUT THE PROGRAM:
- Home must have a purchase price of $750,000 or less. Avalon 1 currently has 20 homes available for under $750,000, with more homes coming soon in phase two.
- Phase two is comprised of two concrete highrise towers. If you are interested in Avalon Park’s next release, Avalon 2, visit or call a sales associate at the River District Sales Centre.
- The program will match your contribution, up to 5% of the purchase price, to a maximum of $37,500.
- The program contribution is a repayable loan in the form of a second mortgage for a 25 year term.
- No interest payments on the second mortgage for the first 5 years.
For example you, as a first time buyer of a $500,000 property, put down 5% ($25,000), $12,500 from your own savings, and an additional $12,500 from the BC HOME Partnership Program.
The structure of the financing would be as follows, assuming a current 5 year fixed rate of 2.90% OAC and 25 year amortization:
The repayment costs would be as follows:
Applications for the BC HOME Partnership Program can be submitted starting January 16, 2017. To learn more about the BC HOME Partnership Program click here.
To speak with our River District Sales Team about this program and to learn more about the available homes Avalon 1 and Avalon Park’s phase two – Avalon 2, please contact our River District Sales Team at 604.879.8830 or visit the Sales Centre at 8700 Kinross St., Vancouver.
The calculations provided are intended for illustrative purposes only and accuracy is not guaranteed. Speak to a financial professional prior to purchasing a home. E.&O.E.
Image via housingaction.gov.bc.ca.