I'm on the other end: responsible. All I see is the BC gov. giving me free money (below market lending) that will reduce the front loaded interest on my mortgage and make it possible to achieve 20% downpayment on my own. In the correct-use scenario, you avoid paying mortgage insurance, reduce mortgage interest, and pay back the loan instead of doing accelerated mortgage payments. My issue right now is getting 20% DP, not making monthly mortgage/strata/tax/etc payments; I already do that in the form of rent.
totally..I'm just saying the majority of people will probably end up in a shitty situation in 5 years, not everyone though. If this had come about a year sooner I'd probably keep my mouth shut, stick my down payment in the bank in a high interest savings account and roll with the tax-payers money for the first 5 years too, profit from the interest earned and pay back what I borrowed right away when the time was due. Free money. I'm guessing, but not sure, that they might have something that stipulates that if you already have the money for 5% down payment they won't lend to you; but who knows.
I don't know the answer to this, but will they lend you up to $37.5k to achieve 20% down? The wording makes it sound like it's only to get 5% down…Christies friends in insurance and big financial firms probably wouldn't be too happy to find out she invented a loophole that would allow people to skip out on mortgage insurance, save on interest etc but I might be mistaken. Curious to know if anyone knows the answer to that