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I mean what could possibly go wrong, especially in an already overheated housing market?

http://vancouversun.com/news/local-n...ime-homebuyers

The program will provide a government-backed loan of up to $37,500, or five per cent, of the purchase price of a home for qualified buyers, starting Jan. 16.

The goal is to match part of a person’s down payment to help them afford to buy their first home, as long as they already qualify for a mortgage under federal rules and the home is worth less than $750,000.

“What we know is for many first time home buyers qualifying for a mortgage is hard, but getting past that down payment and scraping together the $25,000 or $50,000 you might need to be able to get into your first home is just impossible,” said Clark.

The 25-year loan is interest-free for the first five years, and does not require the homeowner to even pay down the principal during those first five years, as long as they keep the home as their principal residence. It will be recorded as a second mortgage on the title of the property.

After the first five years, the province expects monthly payments at the current interest rate, with the loan repaid over the remaining 20 years. Extra payments or full repayment at any time will be allowed, according to the government.

The new down payment program will cost government an estimated $703 million over three years, and is expected to help 42,000 people, according to government figures.

To be eligible, a homeowner must:

• Have saved a down payment amount at least equal to the loan amount for which they are applying from government.

• Have been a Canadian citizen or permanent resident for at least five years.

• Have lived in B.C. for at least one year prior to the sale.

• Be a first-time buyer who has not owned an interest in any residential property anywhere in the world at any time.

• The home must have a purchase price of less than $750,000.

• The buyer must already be able to qualify for an insured high-ratio first mortgage for at least 80 per cent of the purchase price.

• The combined gross household income of all people on title must not be more than $150,000.