B.C. Government to offer downpayment loans for first-time home-buyers

[Poster]

well it will also to serve as a magnet for young Canadians to move into Vancouver and become taxpayers and contributors to the economy.

not saying I support it, but if the govt is going to spend money, at least its going into the hands of the citizens.

[Ducay]

I dont think anyone is arguing buying in GVRD is "dumb" or they shouldnt, but the down payment rules, insurance ratios, etc, exist to protect the market as a whole.

Allowing people to borrow 100% on a high ratio mortgage is a terrible idea. We are supposed to be de-risking the market, not adding people with no downpayments into the mix. Did we not learn any lessons at all from 2008?

[CaptainCrunch]

geez isn't this the kind of thinking that caused all of the problems in the US when people were buying houses that they had no hope of affording?

[Cecil Terwilliger]

Borrowed down payments also trigger higher high ratio insurance.

Wouldn't it be nice if CHMC or Genworth would just change their policies and say that they won't do business with anyone who gets a loan from the government. It would effectively cripple this program. I'm sure it won't happen, they like the business and have no doubt already said they won't kibosh this.

[CliffFletcher]

Originally Posted by squiggs96

People in Vancouver have made the decision that they want the lifestyle, climate, etc. and have decided to allocate more of their earnings towards housing costs than previous generations, or other cities have. If they determine that the costs outweigh the benefits of living here, then they move to other places.

It isn't a question of choices, it's a question of risk. Who's on the hook when interest rates rise (they can't go any lower) and those homeowners can't make their mortgage payments? The Canadian public, that's who, through iron-clad government backing of insured mortgages.

[squiggs96]

Originally Posted by Ducay

Allowing people to borrow 100% on a high ratio mortgage is a terrible idea. We are supposed to be de-risking the market, not adding people with no downpayments into the mix. Did we not learn any lessons at all from 2008?

The government loan will match the homebuyer's downpayment, up to 5% of the purchase price. The buyer still must come up with the remaining amount. They are still borrowing up to 95%, but it's not 100%.

[tkflames]

Edit...nm. Thank you squiggs for clarifying

[Jordan!]

I just bought my first house ever, in Gilbert. AZ has a grant that pays you 5% of the home price. All I needed to do was complete an online home buyer education course.

Got in for earnest money $2100 and the grant covered down payment and all closing costs which was roughly $11k on a $220,000 home

Hell of a program, no payback either. Entirely a gift

[the_only_turek_fan]

LOL.......We are heading to a fiscal disaster.

[Ozy_Flame]

Originally Posted by Bouw N Arrow

I just bought my first house ever, in Gilbert. AZ has a grant that pays you 5% of the home price. All I needed to do was complete an online home buyer education course.

Got in for earnest money $2100 and the grant covered down payment and all closing costs which was roughly $11k on a $220,000 home

Hell of a program, no payback either. Entirely a gift

Are you a snowbird? Or do you work down there?

[Jordan!]

Originally Posted by Ozy_Flame

Are you a snowbird? Or do you work down there?

I'd be the youngest snowbird ever at 33 years old. lol

Live and work here full time since 2009, U.S. Citizen

[Tacopuck]

Isn't the point of a down payment to prove to the bank that your not financially illiterate as well as reduce the amount you borrow?

This is so dumb.

[rubecube]

I'm curious to see what the proposed interest rate is on these loans (the article doesn't say). If it's less than 7%, students in the province (and anyone with remaining student loans) should be apoplectic.

[rubecube]

The premier said she was not concerned the program would raise housing prices.

“Our analysis tells us that it won’t because everybody who is going to be eligible for this program will have to have been accepted for a mortgage already,” said Clark.

[rubecube]

You know it's bad when the NDP are accusing you of reckless spending and racking up debt.

NDP critic David Eby said all the province has done is encourage buyers to stack up more debt. He said the province should be using land it already owns to build affordable housing and increase supply.

Eby also pointed out that B.C.’s attempt to make it easier to enter the market flies in the face of the federal government’s tightened rules for mortgages that were designed to reduce the risk of defaulting on payments if interest rates rise.

“The federal government is trying to rein this in with changes they’ve made, and the B.C. government is saying borrow more money, instead of providing more housing that’s actually affordable, that people can afford to pay and maintain the debt on even if interest rates go up,” he said. “It’s a huge risk to take.”

[Street Pharmacist]

Jeeeeeesus our government is awful

[squiggs96]

Originally Posted by rubecube

You know it's bad when the NDP are accusing you of reckless spending and racking up debt.

I'm not defending the program, but citing David Eby disagreeing with Christy Clarke's position is not news. That's all he does. She could look up right now and say the sky is blue. Eby would say she's wrong and the sky is falling. He's the housing critic for the NDP. He's almost build for the US system of two parties, where the other party is wrong all the time, even if it is in your best interests.

[rubecube]

Originally Posted by squiggs96

I'm not defending the program, but citing David Eby disagreeing with Christy Clarke's position is not news. That's all he does. She could look up right now and say the sky is blue. Eby would say she's wrong and the sky is falling. He's the housing critic for the NDP. He's almost build for the US system of two parties, where the other party is wrong all the time, even if it is in your best interests.

Well let's be honest here, it's been the Liberal's complete botching of the housing portfolio that's given Eby the notoriety and audience he has.

[MoneyGuy]

Originally Posted by malcolmk14

Is it? I wouldn't vote for a government who did something like this!

Maybe smart people aren't the voters they're going after with this ill-conceived plan.

[MoneyGuy]

Originally Posted by Locke

Yeah, I've got to get into the position where I can start buying things with other people's money.

You can. Talk to Slava; I'm sure he'd pleased to explain how.