The Provincial government and the xʷməθkʷəy̓əm (Musqueam), Sḵwx̱wú7mesh (Squamish), and səlilwətaɬ (Tsleil-Waututh) (MST) Nations have partnered to give first-time home buyers the opportunity to purchase condos in Vancouver at 60% of their market value.
About the Homes
A total of 2,600 studios, 1-, 2-, and 3-bedroom homes built at the Heather Lands, located at West 33rdAvenue and Heather Street. These condos will be strata leasehold properties with 99-year leases, meaning buyers will own the home, but not the land it is on. Construction is expected to begin in 2025.
How it Works
- Buyers only pay 60% of the market price through their downpayment and mortgage, while the Province covers the remaining 40%.
- Monthly payments to the Province are not required.
- Buyers need a minimum deposit of 5% of the 60% purchase price.
- The 60/40 financing option is available only for the initial purchaser.
For example, if the market value of a home was $500,000, the Province would finance $200,000. The buyer would need a minimum downpayment of $15,000 and would need to secure a conventional mortgage for $285,000.
Repayment
However, there is a catch! The Province’s 40% contribution must eventually be repaid if:
- The property is sold
- The home is no longer the owner’s principal residence
- If 25 years have passed since the initial purchase
For instance, if the original buyer sells the home after 4 years, they must repay the government not only the initial 40% but also 40% of any property appreciation. If the home is sold within the first three years, an even larger share of profits goes to the Province, with no profit retained if sold within the first year.
If the buyer keeps the home for 25 years, they must repay the 40% contribution with 1.5% interest (compounded annually) as well as 40% of any profits.
Pricing
Prices for these homes will be set at the time of sale. However, based on today’s market value, the approximate pricing would be:
- Studio, market price $620,000 – buyer’s 60% is $372,000, Province finances $248,000
- One bedroom, market price $850,000 – buyer’s 60% is $510,000, Province finances $340,000
- Two bedrooms, market price $1,300,000 – buyer’s 60% is $780,000, Province finances $520,000
- Three bedrooms, market price $1,500,000 – buyer’s 60% is $900,000, Province finances $600,000
It is important to note that several 1- and 2-bedroom condos in East Vancouver are currently priced below $510,000 and $780,000 respectively. So, if you are open to areas outside of Vancouver West, there may be better options for you that still allow for a 5% deposit without requiring you to give up any equity.
Contact your Two Awesome Realtors for more information on if this program is right for you!
