If you live in British Columbia, the
provincial government has th
e First-Time New Home Buyers'
Bonus. This is a one-time bonus payment worth up to
$10,000 for first-time new home buyers in BC.
To be eligible, the home buyer must be an individual who has
never owned a property anywhere else in the world. You can
receive up to $10,000, and it's calculated as 5% of the purchase
price, not including HST.
It's available on newly constructed houses and houses that have
had major renovations done to them. Major renovations is
defined as having about 90% of the house interior redone.
Now, let's talk about the mortgage
component of the house purchase. There are numerous
options to choose from, but today we'll focus on the
This mortgage is beneficial when the purchaser doesn't have a
lot of extra money to spend on closing costs, etc. In
today's market, where house prices can be almost unaffordable
for a young person, just getting the money saved up for a 5%
downpayment can be tough.
The all-inclusive mortgage absorbs all the legal costs and most
of the closing costs involved in purchasing a new home.
This would include items such as lawyer, appraisals,
inspections, land title registration, title insurance, etc. Of
course, nothing is free, so you will pay a slightly higher
interest rate. But if all your available cash is going
towards the downpayment, this Canada mortgage option
could be the one for you.
And finally, what happens when you can't decide whether to go with
a short-term mortgage or a long-term mortgage? You take
both! A split term mortgage lets you lock part of your
mortgage in at a short-term rate and the rest in a
long-term rate. You can even select 3 or 4 different
terms. This is a relatively complicated Canadian
mortgage product and should be discussed with one of our
We look forward to hearing