First time home buyers who meet eligibility requirements for BC’s new Home Partnership Program, (BC HOME Partnership) may initiate online applications on January 16, 2017 for purchases that will close on February 15th or after. This incentive was announced by Christy Clark in December 2016 in an effort to enable approximately 42,000 households in British Columbia enter the home ownership market for the first time. As with most items offered by the government; there are always pros and cons involved.
Working with an experienced mortgage broker such as John Antle will help ensure that you are organized and ready for all aspects of your new home and subsequent mortgage. The Province will match the amount of money that qualifying first-time homebuyers have saved for their down payment; offering up to 5% of the purchase price or a maximum of $37,500 towards a property under $750,000. Only those with a household income of less than $150K may qualify. This is a 25 year loan that is payment free and interest free for the first five years to help families afford a down payment towards their first home. After the 5 year grace period, homebuyers will be subject to monthly repayment at the current interest rates.
Interested individuals need to secure mortgage pre-approval from a financial lending institution for an insured first mortgage. Additional information including: photo and secondary identification, proof of Canadian residency within the province of BC, tax filings and proof of income are necessary. If deemed eligible, the buyer will receive confirmation along with a homebuyer’s kit containing information for the real estate licensee, the lender and the notary public or lawyer.
Mortgage Broker Insight
It is helpful to work with a mortgage professional from the start. Understanding your debt ratio and monthly commitment throughout your amortization will ensure you have all of the information you need to budget correctly. No one wants to default on their mortgage. It is vital to anticipate your financial status after the 5 year grace period is over to be able to responsibly pay back this loan. A reliable lender will factor in the BC Home Partnership Program as part of your debt service ratio to ensure that clients’ will be able to afford their mortgage and loan repayment.
Your 5 Year Plan
While no one can ultimately predict the future, it is important to consider your short term goals. Are you planning on having children and will there be extra mouths to feed? What is your student load debt looking like? Do local job prospects look promising or will you need to work away from home? Considering all facets of your future prior to making the largest financial purchase of your life will help you achieve success and make a wise investment. Will you outgrow your condo or bungalow by the time loan repayment begins? Our dedicated team at John Antle Mortgages in Kelowna know which questions to ask in order to help you secure your first home. Call us today to get started! We look forward to helping you say goodbye to renting and hello to becoming a homeowner!
JOHN ANTLE MORTGAGES – KELOWNA’S MORTGAGE SPECIALIST
We specialise in offering mortgage solutions that go above and ‘beyond the bank’. This means we are able to provide flexible solutions at great rates, often better than what traditional banks have to offer. Working with a mortgage broker can open up your options, allow for potentially greater solutions for your situation. We work with a variety clients including first-time buyers, those looking to transition from renting to owning or renewing a mortgage, self-employed business people, as well as investors in rental and/or vacation properties.
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