A new government program that can see first-time homebuyers become eligible for a down-payment matching loan may not be all itB次元官网网址檚 cracked up to be, warn some industry experts.

B次元官网网址淚tB次元官网网址檚 tough when youB次元官网网址檙e trying to get your first home,B次元官网网址� said Cheryl Johns, a West Shore broker with the Dominion Lending Centres Modern Mortgage Group Corp.

While the government loan will allow some homebuyers to reach the 10-per-cent down level, she said, that loan will be considered debt and must be taken into account when determining how much home potential homeowners can afford. B次元官网网址淚t could just be giving (them) more debt B次元官网网址� I donB次元官网网址檛 know how much itB次元官网网址檚 going to help at this point.B次元官网网址�

Starting in 2017, first-time homebuyers in B.C. may apply for an extra loan, which will remain interest- and payment-free for five years. The government will match buyersB次元官网网址� down payment loan savings up to $37,500 on homes costing $750,000 or less, and buyers must live in the home for the first five years. After that the 25-year amortization loan will revert to a market rate mortgage and the homeowners need not maintain the property as their principal residence.

While lenders and mortgage insurance agencies have yet to announce how this new loan will affect the way they deal with clients, Johns said mortgage brokers are waiting to see how it will translate for potential buyers. B次元官网网址淓very situation is going to be a little different,B次元官网网址� she noted.

Other unknowns could see first-time buyers taking on more risk. If the market fell, Johns said, homeowners would have less equity in the home, which could affect their ability to purchase their next home. She did note that for anyone expecting to come into money B次元官网网址� such as an inheritance or a bonus B次元官网网址� who is able to repay the loan within five years, the program could be a great aid.

Asked whether the loan program could result in more buyers looking for homes under $750,000 B次元官网网址� and potentially driving up prices at the lower end of the market B次元官网网址� Johns wondered how much higher prices could go. B次元官网网址�(But) there isnB次元官网网址檛 much inventory out there for first-time buyers or anyone.B次元官网网址�

Between this latest announcement and other new mortgage regulations rolled out a couple months ago, she said itB次元官网网址檚 best to talk with a professional about the options. She encouraged individuals to set up an appointment, even if they are just considering whether to get into the market.

B次元官网网址淭hereB次元官网网址檚 still some uncertainty. I want to believe itB次元官网网址檚 a good thing, but weB次元官网网址檒l just have to see,B次元官网网址� Johns said.

B次元官网网址� with files from Katya Slepian/Black Press