If I want to purchase a BHC property, how much do I have to have as a down payment?
The amount of down payment that you will require will be determined by your lender. Historically speaking, lenders seem to be requiring ten percent (10%) of the price to the buyer as a down payment, although only your lender can confirm whether that is their current practice or not . For example, if the BHC consented to the sale of a BHC property and the sale price of the property was $600,000 and the homeowner had an 80% equity share in the property ($480,000), if the lender did require the purchaser to have ten percent (10%) down payment that would mean a down payment of $48,000 (10% of (600,000x80%)).

UPDATE 2018 stress test: As of the 1st of January 2018, all Canadian buyers borrowing from a federally regulated lenders will be subject to the OSFI Mortgage Stress Test, including insured borrowers (those with a down payments of 20% or more.)
Lenders will now have to qualify all conventional mortgages using the Bank of Canada’s 5-year benchmark rate, which is currently set at 4.99%, or at the current contracted rate + 2% if that rate exceeds the benchmark rate. So, if you are currently pre-approved at 3.5%, you will now have to qualify as if your interest rate were 5.5%, which could significantly reduce your buying power.

Show All Answers

1. What is the Banff Housing Corporation (BHC)?
2. Who oversees the BHC?
3. What is the BHC’s focus?
4. Does the BHC have rental units?
5. How the BHC ownership properties are kept “value-priced”?
6. What is the equity share model?
7. What is the price restricted model?
8. How many units has the BHC developed?
9. Can anyone buy a BHC property?
10. What is the head lease?
11. What is the BHC’s sublease agreement?
12. What is the annual administration fee?
13. What is meant by “owner-occupied”?
14. Who’s responsible for taxes, utilities and insurance?
15. What key decisions does the BHC make when a property is sold?
16. What is Right of First Refusal (ROFR)?
17. How can I see the sublease agreement?
18. How do BHC properties sell?
19. How do I get my name on the Registered Resale List (RRL)?
20. Is the RRL a first-come first-served arrangement or is it a prioritized list?
21. What are these criteria and how are points allocated to RRL applicants?
22. What is the process of sale for equity share properties through the Registered Resale List?
23. What is the process of sale for price restricted properties through the Registered Resale List?
24. What criteria does the BHC look at when deciding whether or not to defer payment of the BHC’s equity share when an offer to purchase is presented to the Board for consideration?
25. What happens if I’m on the RRL and invited to a BHC showing, but I’m not interested in attending?
26. What happens if I attend a showing through the RRL for a BHC property but I’m not interested in making an offer?
27. If I want to buy a BHC property, can I own other property at the same time?
28. If I buy a BHC home can I stay on the RRL?
29. If I were to acquire a BHC property, can I rent the BHC property if I choose to be away from Banff for any period of time?
30. So what if I retire while I own the BHC property and want to travel or spend a period of time outside of Banff?
31. If I want to purchase a BHC property, how much do I have to have as a down payment?
32. What is a mortgage stress test, and how is it calculated?
33. If my down payment is less than 20% of the sale price of the property, don’t I have to pay mortgage insurance?