Great news for Victoria homebuyers

February 28, 2012

The BC government has introduced a pair of measures worth a combined $51 million to spur this province’s homebuilding industry.
The first-time homebuyers' bonus will offer eligible buyers up to $10,000 back on new homes purchased between Feb. 21 of this year and April 2013.
The bonus amounts to five per cent of the purchase price of the home, up to the cap.
To be eligible, purchasers must be B.C. residents and intend to use the home as their primary residence.
According to B.C. Finance Minister Kevin Falcon, the initiative is targeted at young people unable to get into the housing market: "We believe $10,000 is a great contribution to help our children get into their first home," he said, noting the measure has the added benefit of helping the home construction industry.
Industry insiders such as Philip Hochstein, president of the Independent Contractors and Businesses, said the bonus will have a big impact on the homebuilding industry: "When you are buying your first house, you are scrambling to pull all the - money you can find together, and $10,000 can make a mortgage payment go from unaffordable to affordable," he said.
Hochstein also noted that if the program has the kind of take-up he expects - with the government budgeting for $24 million in bonus payments, that could mean 2,400 new homes - the money the government spends will be returned.
 

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