B.C. Premier David Eby was in Surrey Sept. 25 to announce a new housing loan plan.

The B.C. NDP unveiled a provincewide plan to offer low-interest loans to middle-income renters. The loans would cover 40 per cent of the purchase price of a new home for those that qualify.

B次元官网网址淓verywhere I go, families tell me they dream of buying their first home, but decades of rampant speculation in the market has put it out of reach for too many,B次元官网网址� said Eby. B次元官网网址淥ur plan will make that dream come true for thousands of first-time, middle-class homebuyers by substantially reducing the listing price and the mortgage you will pay.B次元官网网址�

Called B次元官网网址淥pening Doors to Homeownership,B次元官网网址� Eby said the plan will add 25,000 homes over the next five years, or 5,000 per year.

He said the provincial contribution will be repaidB次元官网网址攁s will a share of the appreciation of the home when the owner sells the unitB次元官网网址攚hich will finance the next generation of homeowners.

B次元官网网址淭he benefit of this plan means that people will be able to buy with a smaller down payment, the monthly payments will be lower and will be affordable, and taxpayers will be protected,B次元官网网址� he said. B次元官网网址淚f home values go up, revenue to the public goes up, and resources for more affordable housing projects is more available. If housing prices go down, taxpayers are protected. This is a loanB次元官网网址攖his is not a grantB次元官网网址攁nd the homeowner pays interest on it just like they would any other kind of  financing.B次元官网网址�

Eby said there will be strict income and asset rules for people to qualify. He said applicants have to be in rental housing. He also said he doesnB次元官网网址檛 think the scheme will increase housing costsB次元官网网址攊n that multiple buyers will all of the sudden have a greater ability to purchase a property, thereby forcing up the market value of homes.

B次元官网网址淔unctionally, itB次元官网网址檚 a loan to the homeowner that is registered against the property,B次元官网网址� Eby explained. B次元官网网址淭he homeowner pays interest on that loan to the governmentB次元官网网址攊tB次元官网网址檚 1.5 per cent over the period of the loanB次元官网网址攁nd also the government participates in the equity increase. If the home value goes up, taxpayers participate in that to the value of the contribution, which is 40 per cent of the increase in the equity.B次元官网网址�

Eby called the loan program B次元官网网址渋nnovativeB次元官网网址� and likened it to post-secondary education loans.

B次元官网网址淚tB次元官网网址檚 treated differently than any other kind of capital expense, in terms of government finances, because it's actually, in a financial sense, itB次元官网网址檚 a loan, so itB次元官网网址檚 closer to a student loan,B次元官网网址� Eby explained. B次元官网网址淚t creates a flow of revenue for the government to invest in future affordable housing initiatives.B次元官网网址�

Eby said he didnB次元官网网址檛 think the program could be a back door for the province to get itself into the housing market if participants in the program defaulted on their mortgage and the property was repossessed.

B次元官网网址淚tB次元官网网址檚 possible that that scenario could happen,B次元官网网址� Eby told the Cloverdale Reporter. B次元官网网址淏ut given the structure of the program, and the income qualifications people have to have to participate, we think the risk of default will be quite low among qualified home buyers.B次元官网网址�

The plan could see up $1.29 billion per year in financing provided to prospective homeowners.

According to the NDP, B次元官网网址淏uyers only need to secure financing for 60 per cent of the market price. This would mean a two-bedroom condo that would normally cost $1 million would be accessible at a price of just $600,000.B次元官网网址�

Applicants with an annual household incomes of less than $131,950 would qualify. The government's 40 per cent loan would have to be paid back when the property was sold, or after 25 years.