The information is only being provided provided for households who have an existing loan from the BC HOME Partnership Program.
The BC Home Owner Mortgage and Equity Partnership (BC HOME Partnership) Program stopped accepting new applications on March 31, 2018
Program Overview
Between February 2017 and September 2018, the BC Home Owner Mortgage and Equity Partnership program offered eligible home buyers a repayable down payment assistance loan that is registered on the title of their home.
The first five years were interest and payment-free. Starting in the sixth year, interest accrued, and mandatory principal and interest payments began, amortized over the remaining 20 years. Additional payments or full repayment could be made at any time without penalty. Upon full repayment, BC Housing would discharge the mortgage from the property title.
The BC HOME Partnership loan becomes due and payable in full under the following conditions:
- Default on the first mortgage or the BC HOME Partnership loan.
- Transfer of the home or change of ownership (including adding a person to the title).
- The home ceases to be the purchaser’s principal residence within the first five years.
For more information, please refer to the "Repaying your loan" and "FAQ" tabs.
Repaying your loan
Mandatory Repayment Period
The mandatory repayment period begins on the fifth anniversary of your loan. Approximately six months before each five-year anniversary, you will receive an updated Loan Repayment Notice from BC Housing, detailing the outstanding balance and the new minimum monthly payment.
If you wish to pay your BC HOME Loan off faster by increasing your monthly payment, please download and complete the Pre-Authorized Debit form. Ensure you include your banking information with the completed form.
Submit the completed form to:
Mail: 101- 4555 Kingsway Burnaby, BC V5H 4V8 or
Fax: 604-439-4729.
For assistance with the form, please call 604-439-4729 or 1-844-365-4727
Once the loan has been repaid in full, BC Housing will discharge the mortgage from the title of the property.
FAQ
1. What is the BC Home Owner Mortgage and Equity Partnership Program?
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.
2. What is the definition of a principal residence?
Principal residence is defined as the home that is designated (and is eligible to be designated) as the owner’s principal residence for tax purposes, and where all persons registered on title live permanently (for at least six months per year) in a self-contained unit with access to all living facilities at all times to conduct their daily activities (such as cooking, sleeping and receiving mail) and is the residential address used by the persons registered on title on documentation including but not limited to identification, vehicle registration and income tax returns.
3. How do you know if the residence is being maintained as a principal residence?
During the first five years, before mandatory repayment commences, the program will send you an Annual Mortgage Statement and a Principal Residence Declaration. For each individual on the title of the property, the declaration must be signed and sent back to BC Housing along with supporting documentation.
Random audits of the residence may be conducted.
4. What is the repayment process?
Starting in the sixth year, interest will accrue, and the homeowner will commence regular principal and interest payments, amortized over the remaining 20 years.
To make additional payments or modify existing arrangements, submit the Pre-Authorized Debit form by the 15th of the month for changes to take effect the following month.
5. What happens if the home is no longer the homeowner’s principal residence in the first five years?
The BC HOME Partnership loan is due and payable in full.
6. What happens if the homeowner sells the property?
The BC HOME Partnership loan is due and payable in full upon sale.
7. Can an owner be removed from title, such as in the event of divorce?
Yes, provided the original loan insurance policy remains on the first mortgage.
8. Can another owner be added to title in the future?
Additional owners may be permitted with prior consent, provided the original loan insurance policy remains on the first mortgage and all owners meet the program eligibility requirements in the first five years.
9. Can a first mortgage be refinanced?
Refinancing of the first mortgage is not permitted unless the BC HOME Partnership loan is paid in full.
In exceptional circumstances, BC Housing may not require payment in full as long as the original mortgage insurance remains in place. Such steps must be approved by BC Housing in advance of refinancing taking place.
BC Housing may grant priority to a new lender for the transfer of the first mortgage, if there is no equity take out and no changes to the mortgage terms and conditions (transfer of mortgage will be for less than the original mortgage).
If a homebuyer wants to renew with a different lender, BC Housing will agree to grant priority to the lender under the condition that the original mortgage insurance remains in effect.
10. Can I register another mortgage against my property?
The BC HOME Partnership loan must be paid in full and discharged from title before additional debt, including a home equity line of credit, can be registered against the property.
11. How is the BC HOME Loan interest rate calculated?
During the first five years, the loan was interest and payment free.
Starting on year six, the interest rate has been set at the Royal Bank of Canada Prime Rate on the date of the original loan approval plus 0.5%. The interest rate for years six to ten is detailed in your Loan Repayment Notice and mortgage documents.
Thereafter, sixty (60) days before each of the tenth, fifteenth, and twentieth anniversaries of the mortgage commencement date, the interest rate for the ensuing five years will be adjusted and equal to the Royal Bank of Canada Prime Rate plus 0.50%.
12. Can I renew the interest rate at a better rate?
The interest rate for year six through ten is set can not be renegotiated. The interest rate will not change until the next 5-year mortgage period (after the tenth year of loan period).
Alternatively, you may consider refinancing with your primary lender for a lower rate and paying out your BC HOME Partnership loan balance by consolidating the total amount with your primary lender.
If you wish to repay your loan in full, please have your legal counsel fax a payout statement request to our office at: 604-439-4729
Once the loan has been repaid in full, BC Housing will discharge the mortgage from the title of the property.
13. What is the extra $20 charge that came out with my mortgage payment?
A service charge of $20.00 will be applied for each item returned unpaid due to Non-Sufficient Funds (NSF), account Closed, or Stop Payment. The service charge and any outstanding or unpaid amount will be added to the next scheduled payment. It is your responsibility to ensure that your bank account is in good standing with sufficient funds to cover the authorized payment on the first (1st) day of each month.
14. How can I change my bank account details?
To update your bank account details, please complete a new Pre-Authorized Debit form and fax it to 604-439-4729.
The PAD Agreement must be received by the 15th of the month to take effect the following month. For instance, a PAD Agreement received on January 10th will be effective February 1st, while one received on January 18th will be effective March 1st.
15. How can I update my mailing address?
Please contact our office at 604-439-4729 or 1-844-365-4727, Monday to Friday, 8:30 AM - 4:30 PM.