Interpretation

1  (1)  In this regulation:

"Act" means the Home Purchase Assistance Act;

"applicant" means a person who submits an application for a loan under the Act;

"date" in relation to a purchase means

(a) the date the purchaser's interest is registered in a Land Title Office or the Manufactured Home Registry Office, or

(b) where an applicant constructs a residence on land he owns, the date the construction is completed, or the date he occupies the residence, whichever is the earlier;

"loan" means a loan under section 7 of the Act.

(2)  For the purposes of the Act and this regulation,

(a) "cost" in relation to a residence is the cost to the applicant at the date of purchase by him, and

(i)  in the case of a manufactured home, includes installation charges at a manufactured home park,

(ii)  in the case of a purchase of unimproved land, means the price of that land plus the cost of constructing a residence on that land, and

(iii)  in the case of land assessed and taxed as farm land, means the appraised value of the residence plus 0.4 hectares of land surrounding it;

(b) "disposition" in relation to a residence on which a mortgage has been given under section 9 of the Act does not include a transfer to the spouse of the mortgagor under an order of a court or in accordance with the terms of a will.

(3)  Repealed. [B.C. Reg. 276/85.]

[am. B.C. Reg. 276/85.]

 Amount of loan

2  (1)  A loan shall not exceed the lesser of

(a) $10 000, or

(b) the cost of the residence to the applicant less the total of

(i)  5% of such cost or $2 000 whichever is the greater, and

(ii)  the principal amount secured by the first mortgage.

(2)  Notwithstanding subsection (1), the loan shall never exceed the principal amount secured by the first mortgage on the residence.

[am. B.C. Reg. 277/85.]

 Interest

3  For the purposes of and subject to section 11 (1) of the Act, "specified interest rate" means the interest rate that, at the time an application for a loan is received by the minister, is the greater of

(a) 15% per annum, or

(b) an interest rate 6% per annum lower than the interest rate being charged by Canada Mortgage and Housing Corporation for direct loans under the National Housing Act (Canada).

 First mortgage

4  A loan under section 7 of the Act shall not be made until the minister has examined and approved the terms and conditions of the first mortgage.

 Second mortgage

5  The amortization period of the second mortgage shall be determined by the minister, but shall never exceed the amortization period contained in the first mortgage.

 Qualifying interest

6  Without limiting section 7 of the Act, a person holding the following interests in land qualifies for a loan:

(a) a leasehold interest in land where

(i)  the terms and conditions of the lease are approved by the eligibility committee,

(ii)  the term of the lease is for 30 years or more, and

(iii)  the lease is registered in the land title office as a charge against the title to the land;

(b) the interest of a registered owner of a manufactured home in a manufactured home park, but not a person so registered who possesses under a conditional sale within the meaning of the Personal Property Security Act;

(c) the leasehold interest of an applicant in an eligible apartment within the meaning of paragraph (b) of the definition of eligible apartment in section 1 of the Home Owner Grant Act where

(i)  the eligibility committee has approved the terms and conditions of the lease, and

(ii)  the lessor has given written consent to an assignment or subletting of the lease and has removed any restriction against assignment or subletting from the registered title.

 Disapplication

7  (1)  No loan shall be made unless

(a) all documents and proofs required by the minister or the eligibility committee to support the application are submitted by the applicant within one year from the date of the application, but the minister may, in his sole discretion, extend that period on good cause being shown, and

(b) the applicant is the registered owner and in occupation of the residence at the time the loan is advanced.

(2)  Section 5 of the Act does not apply to a person who purchased a residence in respect of which he has received a grant under the National Housing Act (Canada) for the purchase of

(a) a new home, or

(b) the first home purchased by him.

 Maximum cost of residence

8  The maximum cost of a residence eligible for a loan under the Act is $85 000.

 Transitional provisions

9  (1)  Notwithstanding section 10, B.C. Regs. 269/81 and 378/81 continue to apply to qualified applicants for grants or loans under section 3 of the Act who purchase a residence before the coming into force of this regulation, but with the following modifications:

(a) the date in relation to a purchase shall include a date before the coming into force of this regulation that

(i)  an interim agreement respecting purchase of a residence has been signed and accepted, or

(ii)  the applicant commenced construction of a residence on land owned by him;

(b) in relation to an application for a grant from a purchaser who purchases a residence when his interest cannot be registered in the Land Title Office, the date of such purchase is deemed to be the date the interest in the residence passes to the purchaser.

(2)  Section 4 of B.C. Reg. 378/81 continues to apply to a person who has not elected to receive the total unadvanced portion of a grant until he makes the election set out in that section.

(3)  Where a mortgagor has applied for and been granted a deferred loan under section 11 of the Act, all the provisions of section 8 of B.C. Reg. 378/81, including the obligation to repay the loan, continue to apply to that person for so long as he makes the annual application for an eligible payment rate in the manner and at the time set out in that section.

 Repeal

10  Subject to section 9, B.C. Regs. 269/81 and 378/81 are repealed.