• phone: 604-942-0606
  • fax: 604-942-9533
  • mobile: 604 307-6146
  • toll-free: 1 888 942-0606

 


FIRST TIME BUYER 5% DOWN PROGRAM

First time buyers may purchase a home with only 5% down under the following conditions:

  • Price of property purchased is $300,000 (lower mainland) or less.
  • Home must be principal residence - does not apply to investment property.
  • Buyers must not have owned a home as a principal residence in the last 5 yrs.

Exceptions:

 a) Only one buyer has to qualify for 2. and 3.
b) Hardship due to homeowner having had to sell their principal residence:
        i) due to formal marital break-up (includes common-law).
       ii) for employment reasons and moved to a new geographic area.
      iii) and sustained a loss of equity. Provided that the net proceeds from the sale are applied to the purchase of subsequent principal residence as part or all of the down payment.  

  • Payments for principal, interest, property tax, heating and 50% of any condominium fees can't exceed 32% of your gross family income. (GDS ratio)
  • Your total debt load can't exceed 40% of your gross family income. (TDS ratio)
  • CMHC Mortgage insurance must be purchased at a cost of 2.5% of the mortgage balance. This cost may be added to the mortgage and paid off monthly as part of the mortgage. This insurance is for the sole benefit of the lender but is required by law.
  • Down payment must be from your own resources or a gift. Financial gift from family must be in the buyers possession at least 30 days before making an offer.
  • Mortgage term must be at least 3 years but must be qualified at five years or longer.
  • At least one year on your current job.
  • Clean credit rating.
  • Buyers are required to demonstrate at the time of application their ability to cover closing costs of at least 1.5% of the purchase price in addition to the 5% down payment.
  • Maximum amortization period is 25 years.


Other conditions may apply. 

 

PROPERTY PURCHASE TAX EXEMPTION

First time buyers are exempt from paying the property purchase tax under the following conditions:

  • Price of property purchased is $300,000 (lower mainland) or less.
  • Mortgage loan to value ratio is 70% or higher.
  • Mortgage term must be for one year or longer.
  • Mortgages must be arms length - mortgages held by parents do not qualify.
  • The maximum amount available for principal buydown of the mortgage is $11,000.
  • Buyers must not have owned a house anywhere in the world before. If only one client qualifies then only their portion of the purchase will be eligible for the exemption.
  • Buyers must have been a resident of B.C. for at least one year prior to purchase.
  • Buyers must reside in the home for a minimum of one year following completion.
  • Exemption applies only on residential properties up to 1.24 acres.


Savings available to first time buyers under this program:
   Price      Savings
$275,000   $3,500
 250,000    3,000
 200,000    2,000
 150,000    1,500
 100,000    1,000
  50,000      500
Other conditions may apply