The scheme will enable eligible buyers to receive funding from Victoria for the greater of up to 5 per cent of their new home’s purchase or $37,500, to match their own downpayment savings.
"The introduction of this program will address the affordability gaps that, as a REALTOR®, I hear about every day," says BC Real Estate Association President Deanna Horn. "We thank Premier Clark and Minister Coleman for introducing this valuable program to assist first time home buyers in entering the marketplace."
However, economist Tom Davidoff of the University of B.C.’s Sauder School of Business, slammed the idea, saying that supply is the issue that needs to be addressed.
“I hate it. To be very clear, I think it’s really bad economics,” Davidoff told the Vancouver Sun.
More market update:
The announcement from the BC government that it will help first-time buyers with a new tax-free loan program has been welcomed by many but not everyone agrees that it is the right move.