I have quite a few clients that are first time buyers and they've either shyed away from jumping head first into the rising market because of bidding wars or high cost, but now the government has stepped in and offered some help. The deal with the loan that everyone should be aware of is... It is a loan. You do have to pay it back in full, its not free money. The loan is interest free for the first 5 years, which is nice, but come year 5, you are responsible for keeping up with your monthly installments.
As of January 16th the applicantions for the first time buyer's loan have been opened. They are set to approve 30 applications right off the bat.
"Those already hunting for their first home, however, should know the loans are not available right away — the closing date on a purchase must be after Feb. 15, 2017 for your application to be considered."
Premier Christy Clark has said the second-mortgage program will help first-time homebuyers get into the "really tough housing market," but critics say it exposes buyers to too much debt and favours "a very privileged set of people."
"If you get into the marketplace and get a little bit of equity, it can change your life," said B.C. Housing Minister Rich Coleman, who shared the story of his first home — a mobile home in Alberta — before building his own house a year later.
"The challenge of course is coming up with that down payment." Coleman said Monday afternoon that about 60 applications had already been started, 29 were submitted, and eight would receive letters of approval on Tuesday.
This loan is something you should think long and hard about taking. It does serve a purpose for those that just need to get there "in" into the real estate market.
If you have any other questions about getting into the real estate market, please feel free to give me a call 778-834-7355.
Full report from CBC News