British Columbia’s New Democrats have unveiled a plan that leader David Eby says will help middle-income families purchase a home by financing 40 per cent of the price.
The plan commits up to $1.29 billion per year in financing to help middle-income people buy their first home, while supporting the development of up to 25,000 new units over five years.
A statement from the B.C. NDP said the government would partner with non-profit organizations, local governments, First Nations and market-housing providers to identify land and projects for development.
It said government financing and the use of low-cost land would allow builders to offer units for sale at 40 per cent below market prices, and buyers would need to come up with the remaining 60 per cent.
When the buyer sells their unit, the NDP said the province’s contribution must be repaid, plus 40 per cent of the appreciation value of the home.
Eby said he hears from families across the province telling him their dream of owning a home is out of reach.
“Our plan will make that dream come true for thousands of first-time, middle-class homebuyers by substantially reducing the listing price and the mortgage you will pay,” he said.
If units under the plan are not sold, the New Democrats say the provincial contribution would need to be repaid 25 years after the date of purchase.
The proposal uses the same model as a housing project in Vancouver that Eby recently announced with the Musqueam, Squamish and Tsleil-Waututh First Nations.