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Thinking that the first time home buyer programs Vancouver had was only applicable for first time buyers either to live/invest – then you’re mistaken.  We’ve already covered the programs found specifically nationwide and within British Columbia.

In this article – we’ll show you where you can save money as being a home owner on a yearly basis which your wallet will thank you later for.

This is just a quick summary of the programs available. Click on the title for details and the eligibility requirements for each and how to apply. Like any smart homeowner, you want to see what grants or loan programs that may be readily available to you.

CMHC Mortgage Loan Insurance Premium Refund

This program provides home buyers with CMHC mortgage insurance, a 10 per cent premium refund and possible extended amortization without surcharge when buyers purchase an energy efficient home or make energy saving renovations. A great option and most sought after info on the first time home buyer programs Vancouver for anyone who supports environmentally conscious actions and wanting to reap the benefits of it.

Home Adaptations for Independence (HAFI)

A program jointly sponsored by the provincial and federal governments provides up to $20,000 to help eligible low-income seniors and disabled home owners and landlords finance modifications to their homes to make them accessible and safer.

BC Seniors’ Home Renovation Tax Credit

This credit assists eligible seniors 65 and older with the cost of eligible permanent home renovations to a principal residence to improve accessibility. The maximum refundable credit is $1,000 per tax year and is calculated as 10 per cent of the qualifying renovation expense (maximum $10,000).

Energy saving mortgages

Some financial institutions offer special mortgages to home buyers/owners making homes energy efficient. For example, home owners may qualify for a BMO Eco Smart Mortgage™ or a TD Canada Trust rural property mortgage. Visit your financial institution and ask whether they have any similar program

Low interest green renovation loans

Financial institutions offer loans to home owners making energy efficient upgrades. For example, there’s Vancity’s Home Energy Loan which offers up to $50,000 and RBC’s Energy Saver loan which offers one per cent off the interest rate for a fixed rate installment loan over $5,000 or a $100 rebate on a home energy audit on a fixed rate installment loan over $5,000. Visit your financial institution.

Clean BC Plan

This plan is a new $679 million program of the BC Government that provides a range of incentives including up to $6,000 for buyers of electric vehicles, and $2,000 to replace a fossil fuel heating system.

Energy Efficient Buildings

There are incentives offered to households and businesses for installing high-efficiency heating equipment and building envelope improvements. A partnership of BC Hydro, Fortis BC, and BC Housing.

BC Hydro and FortisBC rebates to improve a home’s efficiency

BC Hydro and FortisBC offer a wide range of rebates for heat pumps, insulation, draft-proofing, hot water heaters, and a $300 bonus offer for making two eligible upgrades within 18 months.

FortisBC new home energy rebate offer

FortisBC and BC Hydro customers can receive rebates when building ENERGY STAR new homes or installing high-efficiency natural gas fireplaces.

Home energy rebate offer

BC Hydro and FortisBC offer home owners rebates for upgrades and improvements, including insulation, space and water heating systems, and ventilation to reduce your energy bill. They also include a bonus offer for completing three or more upgrades. Total value of available rebates: up to $10,000.

ENERGY STAR appliance rebates

BC Hydro Power Smart and participating municipalities offer $100 mail-in rebates to home owners buying ENERGY STAR clothes dryers and refrigerators.

BC Hydro Power smart appliance rebates

Clothes washers: $50 rebate; refrigerators − up to $100 rebate; clothes dryers up to $100 rebate.

Climate action tax credit

This BC government program gives eligible low- and middle-income families a tax credit of up to $400 in 2019 and up to $500 starting in July 2021 to offset BC’s carbon tax.

As you can see, there are numerous grants for the first time home buyer programs Vancouver and homeowners as well. So, start saving, you’ll see those cost rolling back to you. This article is constantly updated for any new changes so feel free to come back anytime to get an updated version.

You’ve decided to make the big leap in purchasing a home! Congratulations! Whether it’s a condo, townhouse, duplex or detached house – the process is the same. This first time home buyer guide Vancouver will show you a general time frame and process on how it works. It’s an exciting time yet it can be stressful in search for the ideal place to call home. I highly suggest to keep an open mind, be patient and trust your realtor to help you in making an informed decision to finally say “yes to the home”.

1. When you have decided it’s time to buy, contact your mortgage broker or bank for a pre-approve mortgage. This determines how much you can afford based on your income and down payment. This process may take 3-5 days. They will usually send in your application to hold the current interest rates for 90-120 days. This will allow you to know what you can afford, and prevents you from bidding on a property, only to learn a lender won’t give you a mortgage for the amount you need. It also provides you a base on what price range you should be looking at when you look for a home.

2. Find a realtor who you feel compatible to work with. Let them know what you’re looking for. Give them a maximum price range that you can purchase. Sit down with him/her to get the specific details on what your needs and wants are. Have your realtor to book a tour for places that may interest you.

3. Once you find a property, sit down and write down the offer and have the offer presented. Review and go through all the proper subjects and conditions that you would like to ensure your protected and for your best interest. If and when the seller accepts your offer, You have 7-10 days to withdraw from the agreement if ‘subjects’ aren’t met

4. When you do have an accepted offer, do your homework together with your Realtor by reading through Property Disclosure, ensuring all financing are in place and read all Strata Documents for Apartments and Townhomes. Make sure to ask questions about anything that you’re not familiar with to ensure you know exactly the condition of the property.

5. Next on this First Time Home Buyer Guide Vancouver process is to arrange home inspection to ensure that there are no major defects. Lender may require an appraisal to confirm the value of the property. Have a land title search done to ensure there isn’t any liens, mortgages, fraudulent activity, leases on title, restrictions, and etc.

6. Ensuring the financing by sending important documents to the lender. These documents usually includes paystubs, notice of assessments, bank account statements, job letters, and purchase contracts

7. Once the mortgage has been approved by the lender, and all the other necessary homework has been reviewed then all subjects can be removed. From there, you have successfully completed the most stressful part of the buying process.

8. Afterwards, you’re required to find a lawyer or notary is needed to help with all the legal paperwork involved. Also, prior to completion, make sure to find a suitable insurance broker to purchase the appropriate amount of insurance coverage for your needs and for the home. You’ll also need to arrange movers or friends/family to set a date help in moving in.

9. In the meantime, the Lender will send all the mortgage details to the lawyer or notary. Once that is done, the lawyer or notary will arrange

10. The final and last step in the First Time Home Buyer Guide Vancouver is the Possession date. This is where you finally get the keys and call yourself a home owner! This date is usually set either between 1-3 days apart depending on the arrangements between you and the seller that is stated in your purchase contract.

Buying your first home is an exceptional feat, whether it’s buying to live or to invest. As our country continues to grow and requires proper housing for everyone, the government of Canada offers a variety of grants and loan programs to assist first time home buyers with the financial strain. It’s a way to encourage Canadians to own a home.

This is just a quick summary of the programs available nationwide. Click on the title for details and the eligibility requirements for each and how to apply. Like any smart first-time buyer, you want to see what grants or loan programs that may be readily available to you.

You may have heard BC First time Home Buyer Loan Program back in 2017 called The BC Home Owner Mortgage and Equity Partnership (BC HOME Partnership). The program assisted residents of British Columbia who were eligible first-time home buyers by providing repayable down payment assistance loans up to a maximum of five per cent of the purchase price.

The loan is for a 25-year term, interest and payment free for the first five years, and is registered on the title to the property as a second mortgage. For the first five years of the loan, the home must be maintained as the owner’s principal residence. The program stopped accepting applications on March 31, 2018 and stopped providing loans as of September 28, 2018.

However, there are plenty of other First time home buyer down payment program Vancouver in applicable within BC or Canada wide.

First Time Home Buyer Incentive

As of September, 2019 – This new First time home buyer down payment program Vancouver is a Home Buyer Incentive which helps people across Canada purchase their first home. The program offers 5 or 10% of the home’s purchase price to put toward a down payment. This addition to your down payment lowers your mortgage carrying costs, making homeownership more affordable.

First-Time Home Buyers’ Tax Credit (HBTC)

Eligible persons who bought a qualifying home in 2018 can claim the home buyers’ amount of $5,000 on Line 369 of Schedule 1 when filing their 2018 income tax and benefit returns. For 2018, the maximum home buyers’ tax credit (HBTC) is $750, which is calculated by multiplying the home buyers’ amount of $5,000 by the federal non-refundable tax credit rate of 15 per cent (equal to the lowest personal income tax rate for the year).

GST/HST New Housing Rebate

New home buyers can apply for a rebate for the five per cent GST if the purchase price is $350,000 or less. The rebate is equal to 36 per cent of the GST to a maximum rebate of $6,300. There is a proportional GST rebate for new homes that cost between $350,000 and $450,000. There’s no rebate for homes priced at $450,000 and above.

Home Buyers’ Plan

Qualifying home buyers can withdraw up to $35,000 (couples can withdraw up to $70,000) from their RRSPs for a down payment. Home buyers who have experienced a breakdown in their marriage or common-law partnership even if they are not first-time buyers and those who have repaid their RRSP may be eligible to use the program a second time.

CMHC First-time Home Buyers’ Incentive

A first time home buyer down payment program for Vancouver, BC would be CMHC. CMHC offers qualifying first-time home buyers with household incomes less than $120,000 a year and a five per cent down payment a 10 per cent shared equity mortgage for a newly constructed home or a five per cent shared equity mortgage for an existing home. The buyer repays the incentive later or at re-sale. The incentive reduces the amount of monthly mortgage payments.

The First time home buyer down payment program along side the other assistant grants that are available in BC would greatly help assist you in navigating the buying process and to save some money in purchasing a home.  This article is constantly updated for any new changes so feel free to come back anytime to get an updated version.

1. Fix Credit Report Errors Before You Buy a House: Up to 8 Weeks

Before you can consider purchasing a home or securing a mortgage, you need to make sure your credit is good,” The industry standard utilized for most mortgage lenders is FICO scores. In Canada, most mortgage lenders will request a credit report from Equifax and/or TransUnion. They will look to see a credible history of borrowing and repaying debt from a variety of sources. Most lenders will look at your credit history over a 1-2 year period to discern whether you’re eligible for a mortgage. Keep in mind that TransUnion and Equifax — respond to disputes within 30 days. From there it takes another month for the changes to reflect.

In most cases, a minimum credit score of 620 is required to qualify for a mortgage. It is recommended to aim for a 760+ credit score. This way you can qualify for the best terms and rates without the headache. A minimum credit score of 720 is ideal to avoid any negative price adjustments. Any score below 620 would be considered subprime. This means that you are looking at higher interest rates, as statistically you are considered a risky investment.

2. Get Mortgage Preapproval or Mortgage Prequalification: 15-25 Days

Buyers will seek loan pre-approval prior to beginning their search for a home. Pre-approval requires borrowers to submit detailed, accurate records related to their finances, credit history, income, assets and debt for review by loan officers and underwriters.

That can happen in two or three days, or as many as 120 days, but those timelines are outliers. The average is about 18 days from the start of the process to finish.

3. Grants and Loan Programs offer – Before or after the sale of the home

Like any smart first-time buyer, you want to see what grants or loan programs that may be readily available to you. You may have heard BC First time Home Buyer Loan Program back in 2017 called The BC Home Owner Mortgage and Equity Partnership (BC HOME Partnership).

As of now, this program is closed. However, there are plenty of other first time home buyer assistance programs Vancouver, BC that you capitalize on within BC.

1. BC Property Transfer Tax (PTT) First-Time Home Buyers’ Program

This First time home buyer assistance programs Vancouver is very sought after to save money. Qualifying first-time buyers may be exempt from paying the PTT of one per cent on the first $200,000 and two per cent on the remainder of the purchase price of a resale home priced up to $500,000. There is a proportional exemption for homes priced between $500,000 and $525,000. At $525,000 and above exemption is nil. Foreign entities and taxable trustee are not eligible for the exemption.

2. BC Property Transfer Tax Newly Built Home Exemption

Qualifying buyers of new homes may be exempt from paying the PTT on a newly built home or newly subdivided unit priced up to $750,000 and a partial exemption on newly built homes priced $750,000 to $800,000.

3. BC Home Owner Grant

This grant reduces property taxes for home owners with an assessed or partitioned value up to $1.525 million. The grant is reduced by $5 for each $1,000 above the threshold and eliminated at $1.639 million (basic grant) and $1.859 million (additional grant). The basic grant:

up to $570 for principal residences in the Capital, Greater Vancouver, and Fraser Valley regional districts;

an additional grant of $200 to rural home owners elsewhere in BC; and

an additional grant of $275 to seniors aged 65 and older, those who are permanently disabled, and veterans (or surviving spouse) of certain wars.

4. BC Property Tax Deferment Programs

Another first time home buyer loan program to consider is the Property Tax Deferment Program for Seniors: qualifying home owners aged 55 and older can defer property taxes.

Property Tax Deferment Program for Families with Children:qualifying home owners who financially support children under age 18 can defer property taxes.

These First time home buyer assistance programs Vancouver combine together with prepping your financial situation to get the best borrowing power would greatly help assist you in navigating the buying process and to save some money in purchasing a home. 

You’ve decided to make the big leap in purchasing a home! Congratulations! Whether it’s a condo, townhouse, duplex or detached house – so what’s the next step? The ideal way is to figure out what financial assistance / benefits that you can apply and receive to help reduce your cost in purchasing your first home. This article will explain what BC First time Home Buyer Loan Program that BC Government had offer and what is the most current program which replaced the previous one.

Late of 2016, the BC Liberal Government had introduced the Home Mortgage and Equity Partnership program to assist first time home buyers in BC to enter the housing market. A flood of overwhelming pressure from BC residents to have the government to find a solution in cooling the market. As a result, it was the first BC First time Home Buyer Loan Program strategy to help BC tackle the housing crisis that was overly heated at the time.

When the it was first introduce, it was amounted to only less than 3000 people that took up the offer in loan since it sparks unspecific details and concerns since in a nut shell this program encourages first time home buyer to take on a second mortgage which can lead increasingly more debt that many not be able to repay on top of first mortgage.

As a result, province decided to eliminate Home Mortgage and E

quity Partnership program that was established by the previous BC Liberal government with a new program to promote the construction of affordable housing.

Our current NDP government have now introduce their version of BC First time Home Buyer Loan Program which is called: First-Time Home Buyer Incentive back in September 2019. The incentive will see the Canadian Mortgage and Housing Corporation (CMHC) provide a portion of the purchase price in exchange for a stake in the home. This is what you can roughly thing of as being a shared-equity mortgage.

This assist buyers who qualify with funding of 10% towards a newly built home and 5% for an existing one, or 5% of a new or existing mobile/manufactured home. Investment properties are not eligible, with “possible exception in times of hardship. The buyer repay the loan until they sell their home. The CMHC will have an ownership stake and would be entitled to a percentage of the sale price based on the size of the original loan.

CMHC will have an ownership stake and would be entitled to a percentage of the sale price based on the size of the original loan

So how does this work?

There are several conditions that must be met for a first-time buyer to qualify for the program.

The buyer’s household income can be no more than $120,000. The t

otal mortgage is limited to 4X their maximum income, maximum borrowing amount is $480,000.

The loan must be repaid after 25 years or if the house is sold, and the program does not allow for partial payments over time. Since it is a shared-equity loan, the government shares in the appreciation or depreciation of the property, which an independent appraisal will determine. As well, before selling the property, you must obtain approval of the sale from the program administrator.

On the program’s website they use this example to illustrate how the pay back works: “You receive a 5 per cent incentive of the home’s purchase price of $200,000, or $10,000. If your home value increases to $300,000 your payback would be 5 per cent of the current value or $15,000.”

The website includes calculation tools so you can determine the size of your loan.

You’re a time homebuyer if you have never owned a home before, if in situation of spousal separation or if in the last four years you did not occupy a home that your current spouse or common-law partner owned.

The total amount of funding for NDP government’s version of  BC First time Home Buyer Loan program is $1.25 billion over three years.

To learn more and how to apply – click here