Although a few months have passed since this program was unveiled, we’re now getting some more clarity on some of the finer technical points surrounding BC’s program aimed at assisting first-time buyers to get into a home more easily.
1. The mortgage insurance premium you pay is based on the amount you personally are putting down, not the total downpayment with the government money included.
2. On mortgages plus improvements (example: a $400,000 house plus $40,000 needed for immediate renovations), the program will lend based on the $400,000 purchase price, not $40,000.
3. The program will still assist with down payments obtained non-traditionally (ie: not through savings or RRSP’s, but rather through certain types of gifts, etc.), but the insurance premium is simply higher.
4. Even if a buyer has saved their own down payment, it may make sense for them to use the program in order to get into a higher price range of home, or to put “more” down on the one they’re buying, for leverage purposes.
If you have questions about the program, how to apply, what the parameters are, or anything else, feel free to give us a call!