Mid February has become an ultra exciting time for first time home buyers in British Columbia. Many individuals have been counting down the days to complete their eligible purchase on or after February 15th in order to participate in BC’s Home Partnership Program. All across Vancouver, dreams of home ownership are finally becoming more of a reality. There are specific qualifications requirements that need to be addressed in order for a lender to consider your eligibility for this down payment assistance loan.
Deciphering the Details
As A Vancouver Realtor; specializing in the Greater Vancouver real estate; market has become even faster paced recently and my colleagues and I anticipate many more Vancouver home buyer’s this year thanks to this new program being offered by our government. The following criteria must be met by anyone who will be on the property title in order to be eligible for BC’s Home Partnership Program.
Interested buyers must be a Canadian citizen or have their permanent resident status for the past 5 years. Prior to applying for this loan that is interest free for the first 5 years; individuals must have lived in BC for 12 full months. The government will match half of your down payment up to a loan maximum of $37,500. Your down payment may be from money you have saved up or received as a gift from family. The residence must have a purchase price of $750,000 or below. This loan must be repaid after the 5-year interest free grace period, after which your loan amount will be amortized over a 20-year period.
The potential home owner must be eligible for a high-ratio insured first mortgage. The combined annual gross income of those on the property title cannot exceed $150,000. Individuals on title must be first time homebuyers who have never received a first-time homebuyer’s refund or exemption and do not own any interest in a principal residence anywhere else. The property needs to be your principal residence for 5 years and if you are planning to move out prior to the 5 years the loan must be paid in full.
Don’t Allow Any Credit Limitations To Hold You Back
Specializing in the Greater Vancouver real estate market includes some of our trendiest and most sought after neighbourhoods including: Coal Harbour, Kitsilano, North Shore, Yaletown, East Vancouver, Fairview, False Cree, Mount Pleasant, West End, Downtown and beyond. Feel free to view my current listings here. Seeing people get excited when they discover the condo or home of their dreams is always a thrill. However, poor credit ratings can affect anyone in an extremely negative way. I encourage clients to stay on top of their credit history by being proactive; checking into your credit report now could save you later.
Oftentimes, your financial institution can pull contact your credit bureau on your behalf or you may contact Equifax or TransUnion Canada via writing them or inquiring online to assess your current credit score. There is often a fee attached when you contact them online. The snail mail process can be time consuming but may offer a free report. Prepare to add more time if you discover there is an old debt or late payments negatively impacting your credit history. Therefore, if you know you are breaking into the real estate market for the first time this year, it may be worth your while to be proactive. Lenders require you to fix your credit score by proving you have paid off old debts as part of their approval process. Letters vouching repayment from previous debtors are commonly required and this can also be a slow process.
Multiple Offers on Hot Properties Are Commonplace
Essentially, your credit history can make or break your potential of purchasing your dream starter property. It is vital to ensure all of your ducks are in a row prior to visiting open houses and falling in love with that new condo, house or town home.
With a 10 year low on listing inventory, Vancouver properties are selling quickly. Finding out that your old cell phone carrier or cable bill went to collections years after you moved (often for under $50) can be extremely frustrating when you pay consistently pay the majority of your bills on time.
Unfortunately, a simple misunderstanding such as not leaving a forwarding address or updating your contact info when you switch phone numbers or move can drastically affect your credit score and leave you lacking when it comes to the pre-approval process.
I Look Forward to Showing You Your Future Home!
If this is the year to realize your home ownership goals, I am excited to help you transform your dreams into reality. Please don’t hesitate to contact me if you are buying or selling at https://www.leowilkrealestate.com/contact-leo-wilk-vancouver-realtor/ or give me a shout any time.
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