January 12, 2016

New condo, no money down

A B.C. developer is proposing a plan to sell condos in a new Port Moody building to people who don’t have the cash for a down payment. Townline Homes has worked with BC Housing to structure the program, which will offer first-time buyers the chance to purchase a unit in The Strand for eight per cent less than the appraised market value. The eight per cent would be used as an effective down payment for a mortgage.

“It’s just a different spin on, ‘How do we provide an affordable home ownership option to buyers who otherwise can’t get into the market?’” Townline vice-president of marketing Chris Colbeck told CBC News.

The proposal will need to be approved by Canada Mortgage and Housing Corporation, which usually requires a minimum of five per cent down payment to qualify for insurance. CMHC could grant an exception under its Flexibilities for Affordable Housing program.

In Townline’s plan, buyers must have a family income of at least $65,850 for a one-bedroom unit, or $92,430 for a two-bedroom suite. Buyers must live in the home as a principle residence for a minimum of two years, after which they are free to sell it at market value. If the program is approved, Townline hopes to offer 84 condos up for pre-sale this spring.

More News