Yes the BC government’s contribution is interest free for 25 years!
There are already projects in the planning stage in six municipalities in BC. Bank of Mom notify you of upcoming participating developments as soon as they come out. Share this initiative and sign up. The higher the demand, the more incentive there is for more developments to participate!
Developers partner with BC Housing to get more density from municipalities and low cost financing. They also de-risk their project by getting a competitive advantage over projects not participating in this program.
BC Housing works in partnership with the developer and will not allow them to sell over market.
Bank of Mom is an awareness campaign created by Key Marketing to raise awareness about this amazing program, monitor and share information about upcoming Affordable Home Ownership Program (AHOP) projects. Sign up to find out about upcoming opportunities when they become available. The bigger demand for this program, the more developments will be encouraged to participate – we encourage you to share bankofmom.ca with friends and family who could benefit.
You’ll borrow less from your mortgage lender so your mortgage loan should be easier to get. BC Housing sits in ‘second position’, or ‘subordinate’ to your first mortgage. This is how your first mortgage lender likes it!
You just have to sign a declaration that you plan to live in the home. The BC Government wants to help people live in homes and if that home is a great investment so be it but the intent is not to help investors not planning to live in the home.
Register with Bank of Mom and get all the info about the program and upcoming projects for free with no obligation. You’re free to buy a home without representation. If you want advice about which home is most suitable for you, you will enter an agreement with a rep of Key Marketing or any brokerage. That rep will be paid by the developer and those fees disclosed to you in advance of buying.
Your first mortgage provider will charge normal fees and interest and disclose them to you at the time you finance your purchase.
The BC Government will charge you no nothing.
You sell for whatever price you want whenever you want. Out of the sale proceeds your first mortgage is paid first as normal. Then your second mortgage (BC Housing) is paid. This amount will be a percentage of the value of the selling price. If the BC Government loaned you 20% of the purchase price interest fee, you pay them 20% of what you sell for, whether that selling price is more or less than what you originally paid. BC Housing is your partner in this and they win or lose with you.
Don’t pay anything until you sell the home, change the ownership, default on the first mortgage or at the end of 25 years.
Whenever you want! The loan is free for 25 years so sell by then or refinance.
Think of BC Housing as your partner in this. They win or lose with you. Sell for market price, whatever the market, whenever you want. Out of sale proceeds pay your first mortgage first. Then your second mortgage (BC Housing) is paid. This amount is a percentage of the value of the selling price. If the BC Government provided a second mortgage for 20% of the purchase price interest fee, you pay them 20% of what you sell for, whether that selling price is more or less than what you originally paid.
The money goes to the municipality that granted the developer higher density to fund affordable housing programs in that municipality. It’s a huge win for the municipalities who currently give developers density in exchange for much less in the form or fees, art, road infrastructure and other community amenities, all of which drive up development costs and home prices.