Too early to cancel homebuyers loan
When I heard the B.C. government was cancelling the loan program for first-time homebuyers, I was a bit frustrated. I have been working toward a goal and that program was going to play a crucial role in getting there.
The program expires on March 31, and offered first-time homebuyers funds to match up to five per cent of the purchase of a home not exceeding $750,000 in value.
I understand the government’s reasoning was that the Home Owner Mortgage and Equity Partnership program wasn’t being used as expected.
Of course not enough people were taking advantage of it — it hasn’t been around long enough. The people who can really benefit from the program, and most likely the people for whom the program was intended, aren’t going to have enough funds in an account waiting to be matched.
The maximum loan amount was $37,000 and would have been interest-free for five years.
I read that in the first nine months, 1,395 home transactions were approved. This would make sense that only a few people were in a position to access the program right after it was launched.
And remember, those transaction numbers can be multiplied by the number of people living in homes purchased through the program.
I’ve talked with people who discussed offering money to their children who could then get the funds matched by the government and buy a home. If someone is able to help a family member, I am fully supportive of that. When my daughter is an adult, I sure hope I am in a position to help her reach these goals.
When the program was created, it was projected that in the first three years, 42,000 people would take advantage of the loan. I’m not sure that number would have been reached in three years, but in the second or third years, the number would have increased. With the program about to close after only a little over a year, we will never know how many people would have used it.
It’s a common theme these days that homeownership isn’t something everyone will experience. I know a lot of people who openly admit they don’t think they will ever own their own homes.
The HOME Partnership was implemented to help make home ownership a real possibility for people across the province.
Before someone will start saving for a downpayment, they need to believe that owning a home is possible. That’s a big first step. Many people have just drilled it in their heads that owning a home isn’t ever going to be a possibility.
It’s like conquering most hurdles in life — the mental step is the largest one.
Realistically, anyone really in need of this program is going to have to make a plan and start saving.
When this program was introduced in January, 2017, I thought it sounded great, but without having anything close to a downpayment, I figured it wouldn’t be something I could access.
I started to talk to some financially savvy friends who convinced me this is something that I could do, even as a single parent raising a kid on one income without other assistance.
I even took the step to put all my finances out on the table and had a friend sift through all my financial imperfections and provide some guidance to help me one day own a home and hit other personal goals.
The plan was to pay off my debt, save for a couple of years, apply for the HOME Partnership program and buy a home.
I know I’ll eventually earn the title of homeowner. I also know that if the HOME Partnership program was sticking around, I would get there faster.
Even with this program disappearing, I’m pretty sure something else will come up that will assist first-time homebuyers. And let’s hope I have enough money saved to allow me to utilize the opportunity when it comes.
If and when another opportunity is offered to B.C. residents, I sure hope it stays around long enough for the people who really need it.