019: Understanding the New BC Home Partnership Program

January 12, 2017

About your host

​I have been a mortgage broker for 10 years and have held several different positions within the industry to get me to where I am today. Over the years I have helped many families achieve the goal of home ownership as well as save thousands in finding the right mortgage for their needs.

This week we take a look at the new BC Home Partnership Program which “assists residents of British Columbia who are eligible first-time homebuyers by providing repayable down payment assistance loans.”
This government program helps new homebuyers get into the real estate market and provides them with a loan which matches their down payment up to 5% of the purchase price.
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Key Points

  • [0:19] What is the BC Home Partnership Program?
  • [0:42] When does the program come into effect?
  • [1:28] The program itself utilizes two different programs through CMHC.
  • [1:36] The first program uses the Flex Down.
  • [2:08] The government loan given to homebuyers has no interest or payments for the first 5 years.
  • [2:24] However, this does not mean no payments altogether.
  • [2:30] Mortgages must be qualified on the amount borrowed.
  • [2:54] How can this help buyers qualify for a larger amount?
  • [3:21] Amortization over a longer period is better for the buyer in the long-run by keeping payments lower.
  • [3:27] The second program is the Affordable Housing Initiative.
  • [3:51] Some confusion comes from the potential cost of premiums.
  • [4:28] Premiums will cost more than people typically realize.
  • [5:56] Remember to borrow money as cheaply as possible.
  • [6:31] The government typically doesn’t give away money at a low interest rate.
  • [6:59] This is a first time homebuyer program; make sure you qualify.
  • [7:27] A first time homebuyer is considered someone who has not owned any type of property before.
  • [7:51] This is a loan, not a grant.
  • [8:01] Scenario 1: You’re in your principle residence, and after the 5 year mark, you’ll start monthly payments over the 20 year amortization. These interest rates are not set from day one.
  • [8:25] Scenario 2: This property is used as a rental. Once it is considered a rental and not a principle residence, you must begin paying back the loan.
  • [8:39] Scenario 3: Because it is a second mortgage on top of an existing home, selling your home within the first 5 years means the loan must then be paid back.
  • [8:58] Applications can be submitted after Jan. 16, 2017.
  • [9:15] You need proof of status in Canada.
  • [9:25] A secondary piece of identification and proof of income is also required.
  • [9:38] As a household, you must be making less than $150,000 to qualify.
  • [10:39] The final step is the mortgage pre-approval.
  • [11:34] Keep an eye out for bchomeparternship.ca, coming soon.

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Contact Chad Weninger

About your host



​I have been a mortgage broker for 10 years and have held several different positions within the industry to get me to where I am today. Over the years I have helped many families achieve the goal of home ownership as well as save thousands in finding the right mortgage for their needs.







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