BC Home Owner Mortgage and Equity (HOME) Partnership Loan

Between January 16, 2017 and March 31, 2020 the BC government is supporting first-time home buyers to cover part of the cost of a mortgage down payment. This loan will match a buyer’s down payment contribution dollar-for-dollar, to a maximum of 5% of the purchase price (up to a $750,000 property). It will be registered on the property title as a second mortgage. The first five years of the loan is interest and payment free.

Am I eligible?

Each person who will be on title for the property purchase must meet all of the following criteria:

  • You are a first-time home buyer who has never owned a principal residence anywhere in the world.
  • You are either a Canadian Citizen or have Permanent Resident status in Canada for at least 5 years.
  • You have lived in British Columbia for the full 12 months previous to receiving the loan.
  • Your combined household annual income is $150,000 or less.
  • You are eligible for a high-ratio insured first mortgage.
  • You will live in the property being purchased as your principal residence for at least 5 years.

How do I apply?

Application for the loan program will be exclusively online, so you will need to have electronic versions of your documents available. If you’re scanning a physical card, make sure that you have a copy of both sides and that your information is clearly visible.

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You will need to provide the following for each person who will be registered on title for your home purchase:

  • Proof of status in Canada (Citizen or Permanent Resident)
  • Photo identification
  • Your most recent Notice of Assessment from Canada Revenue Agency (CRA)
  • Your pre-approval letter from a lender for a high-ratio insured (less than 20% down payment) first mortgage

Apply online through the BC Housing website

What happens next?

BC Housing estimates 5 business days processing time to evaluate applications. If your application is accepted, you will receive confirmation of pre-approval from the BC HOME Partnership program and a Homebuyer’s Package with information on the next steps you need to take.

You have up to 6 months to find a property you like and make an offer on it.

Once you have an accepted offer, you will need to provide BC Housing with a copy of the Contract of Purchase and Sale (CPS) through their website portal. BC Housing will then send you a loan commitment letter that you will bring to us to complete the financing of your first mortgage.

You will need to make sure to leave at least 14 days between confirming all of your financing – including the BC HOME Partnership loan – and the final closing date of the sale so that BC Housing can complete all of the paperwork and ensure that the funds are in place with your lawyer on the closing date.

How will payments work?

You aren’t required to make any payments on the BC HOME Partnership loan in the first five years, but you may choose to repay the loan in full or in part at any time with no penalty. Beginning on the fifth anniversary – year 6 of the loan – you will need to make monthly payments (principal and interest) at a rate outlined in the Conditional Loan Approval letter issued by the government.

You will make your scheduled payments on your first mortgage as set out in the agreement with the lender.

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Not quite sure if you’re eligible? We can help!
If you are close to receiving your permanent resident status, are approaching your 12 months of living in B.C., or not sure if you qualify for a high-ratio first mortgage, we are happy to work with you to make sure your application is ready when you are.

Call us at 250-590-6520 to speak with a mortgage planner today. We’re open 8:30 a.m. – 5:00 p.m. PT, from Monday to Friday. Our team can also arrange an appointment evenings or weekends to suit your needs.

Learn More

Free First Time Home Buyers Guide

 

Top 10 Things You Need to Know About the BC HOME Partnership Loan