One of our resident mortgage brokers, Eitan Pinsky, has offered a quick and handy review of the changes made to mortgages and financing (both provincially and federally) in Vancouver in 2016.
Take it away Eitan..
BC’s Interest Free Mortgage Loans and Other Mortgage Changes in 2016
On December 15, 2016, the British Columbia government announced the BC Home Owner and Equity Partnership (BC HOME Partnership) to help 1st time home buyers by providing interest free loans to help with down payments.
The Goal (as per the Province) is to provide a repayable down payment assistance loans to 1st time home buyers. Basically, the BC Liberals want to increase affordability.
In my lengthy blog article about the new Interest Free Down Payment Loans for First Time Home Buyers, I go over the the program’s finer points. My concluding thoughts are below:
To make a long story short, I applaud the government for trying… Affordability for first time home buyers (and 2nd time home buyers, for that matter) is a big issue. I believe too little has been done on the supply side – so far, most of the programs have been demand side changes. Demand side changes decrease affordability. In 2016 alone, these changes have been:
On the supply side, however, we have had some, but very limited movement:
More needs to be done…
Want to check out your affordability? I’ve built a handy affordability/qualification calculator.