The province of British Columbia has just introduced a new loan program that is aimed to help first time home buyers. Despite the sudden slow-down in our market, prices of homes are still significantly higher than it was just a few years ago. An average price of a condo in Vancouver is over $500,000. For a mortgage, a 20% down payment would be a hefty $100,000. Many first time home buyers are finding it difficult to save up that much money, so to help combat this, they can now apply for an interest-free loan up to $37,500.
Although many people are criticizing this program, suggesting the debt-risk is too high, the province will be running this program for 3 years. There is an estimated over 40,000 people will apply for this loan.
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