Personal Finance

Down payment loans driving Vancouver condo prices up, says economist

A B.C. government program aimed at helping first-time homebuyers with their down payment has loaned out more than $13 million in its first six months.

But one economist says the big payout by the BC Home Owner Mortgage and Equity Partnership program appears to be one of the factors fuelling the region’s newly soaring condo market.

More than 1,100 people have now taken advantage of the provincial program which will loan buyers up to five per cent of the price of a home, to a maximum of $37,000 – with a five-year grace period on interest payments.

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