Jan. 11 brief news: payday loans, first-time home buyers

New, lower charges for payday loans came into effect Jan. 1, applications open now for first-time home buyers' down payment help

Less charge in short loans

New, lower charges for high-cost, short-term cash loans – payday loans – came into effect Jan. 1.

The maximum allowable charge – including all fees – for a payday loan in British Columbia is $17 for every $100 borrowed, making it the second-lowest rate in Canada.

Lowering the total allowable charge to $17 from $23 builds on regulations the Province implemented in 2009.

 

First-time homebuyers get help now

First-time homebuyers can begin to get down payment help from the new B.C. Home Owner Mortgage and Equity Partnership program on Jan. 16.

Applications will be accepted for purchases that will close on or after Feb. 15.

Before applying online, first-time homebuyers need to:

* Get pre-approval for an insured first mortgage from a financial lending institution.

* Apply to BC Housing for the B.C. HOME Partnership program loan. If eligible, the buyer will receive confirmation of eligibility and homebuyer’s kit, with information for the lender, real estate licensee, and lawyer/notary public.

* Obtain an accepted offer on a home priced under $750,000 and provide details of the planned purchase to BC Housing for approval.

In order to submit an online application, homebuyers will need to have proof of status in Canada and residency in British Columbia, secondary identification (must include photo), proof of income and tax filings and insured first mortgage pre-approval.

More information on https://news.gov.bc.ca/files/Housing_Campaign_HOME.pdf