B.C.'s new home credit for first-time buyers expires on March 31 – and that's great news for brokers tired of seeing many clients lured to a developer's lender.
“Brand new projects are not always the best value, but some borrowers were excluding the additional step of research with their Realtor and going to projects directly without representation, because they were being distracted by the bonus” says Angela Calla, a broker with Dominion Lending Centres and host of "The Mortgage Show" on CKNW AM 980.“The bonus is good in some cases, but only after the due diligence has been done with a professional to ensure the best value for the purchaser.”
Thaty bonus was introduced early last year and offers first-time new home buyers a payment of up to $10,000.
Although the bonus is a popular incentive for consumers, the new home market is not a particularly strong one for many brokers, largely shut out of development showrooms by builders in partnership with bank reps.
To qualify for the program as a first-time new home buyer, you had to had to buy a new home in British Columbia; have never owned a primary residence; if you have filed a 2011, or 2012 B.C. income tax return; are eligible for the provincial HST New Housing Rebate; and intend to use the home as the primary residence.
“The most frequent questions I get from first-time homebuyers are around the bonus,” Scott Dawson, broker for Verico – Paragon Pacific Mortgage, told MBN when the provincial government first announced the bonus last year.