(December 15, 2016
If your one of our countless real estate clients or our industry partners your well aware of our real estate groups hawkish thoughts on "free money." Especially when tax payers will be footing the bill as usual. We remember paying 19-20% mortgage interest rates in the early 1980's do you?
Here is the low down on British Columbia's government wanting to "help" first-time homebuyers get into the market by offering interest-free and payment-free loans for the first five years. This is coming after the same BC government with the assistance of the media, the mayor of Vancouver and special interest groups blowing the head off of the lower mainland's and BC real estate market early this year with taxes and scare tactics. Then the federal government doubling down with even more draconian mortgage and qualification laws.
Premier Christy Clark says the government will provide first-time homebuyers with a 25-year loan for a down
payment on a home to a maximum of $37,500, as long as the funds have been matched by buyers.
The program applies to homes with a maximum value of $750,000 and the interest-free portion of the loan will last for the first five years, with the repayment schedule at current interest rates over the remaining 20 years.
Clark said most people can remember how difficult it was to put together the money for a down payment on their first home. “People need a partner in scraping together that first down payment."
She said the program is aimed at helping middle-class workers own a home. We don't know about you but our real estate group aren't buying the usual "helping the middle class" gambit.
“A home is a place where you live and raise your family and start your life,” she said.
The program will start accepting applications online next month.
To be eligible, first-time buyers must be pre-approved for an insured high-ratio mortgage for at least 80 per cent of the home's purchase price.
So, there you have it folks. The truth about our BC real estate market soap opera.
If you or anyone you know are considering selling your home or purchasing ANY real estate in the lower
mainland or our spectacular province don't hesitate to call or email us anytime, 604-767-6736
. We'll buy the coffee.