Interest-Free Loans for First-Time Homebuyers

Understanding the Home Owner Mortgage and Equity (HOME) Partnership
Interest-free Loans for First Time Home Buyers

The Home Owner Morgage and Equity Partnership (“HOME”) is an initiative created by the Province of British Columbia to help first-time home buyers with their down payment. This initiative helps first-time home buyers by providing a loan that is interest-free and payment-free for the first five years.

The Need-to-Know Details
  • The Program will contribute up to 5% of the home’s purchase price, up to a maximum purchase price of $750,000 (excluding taxes and fees)
    • The maximum amount contributed by the Program is $37,500 (5% of $750,000)
  • The loan will be registered on the property title as a second mortgage
  • For the first five years, the loan is interest-free and payment-free
  • After five years, the home buyer can either repay the loan in full or enter into monthly payments at current interest rates
  • The loan becomes due after 25 years
Am I Eligible?

All individuals with a registered interest on title must:

  • Reside in the home and use the property as their principal residence for the first five years;
  • Be a first-time home buyer who has not owned an interest in a principal residence anywhere in the world at any time;
  • Be a Canadian citizen or permanent resident for at least five years;
  • Have resided in British Columbia for at least one year immediately preceding the date of the application;
  • Obtain a high-ratio insured first mortgage on the property for at least 80% of the purchase price from a National Housing Act approved lender;
  • Have a combined, gross household income of all individuals on title not exceeding $150,000;
  • Have saved a down payment equal or above the loan amount for which the home buyer applied;
  • Have not received any previous first-time homebuyers’ exemption or refund.
Let’s use an example!

Home price – $400,000

Minimum down payment required (5%) – $20,000

Personal down payment – $10,000

BC Home loan – $10,000

Ready to purchase a home?  Please contact us for a quotation of our conveyancing services!

*Information gathered from British Columbia Housing Action

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