Heather Lands may let an eligible buyer purchase a new Vancouver home while initially financing only 60% of its market value. The other 40% is not a gift or a permanent discount: it is provincial financing that must be repaid when the owner sells, reaches 25 years, or stops meeting the program’s occupancy rules.
That lower starting amount could make mortgage qualification easier, but it is only one part of the decision. These homes will be 99-year strata leaseholds on land owned by the Musqueam, Squamish and Tsleil-Waututh Nations, and buyers remain responsible for taxes, strata costs and the long-term repayment terms.
The 40% is deferred financing, not free equity
Under the Attainable Housing Initiative, the buyer completes a conventional real-estate purchase using a down payment and mortgage for 60% of the home’s market price. The Province of British Columbia finances the remaining 40% through an arrangement described by the Province as being similar to a second mortgage.
There are no regular monthly principal-and-interest payments on the provincial portion. That helps with the buyer’s monthly financing at the beginning, but the obligation does not disappear. It becomes payable after a triggering event, including a sale, the end of the 25-year period, or a change that means the home is no longer the owner’s principal residence.
The minimum presale deposit is 5% of the buyer’s 60% purchase share—not 5% of the full market value. A buyer should still obtain a lender’s written confirmation that it will finance this specific leasehold and program structure. General mortgage guidance is useful background, but the lender must assess the actual Heather Lands documents.
What the official price examples look like
Final prices will be set when the homes are offered for sale. The Province’s published examples show how the 60/40 arrangement would work under the market assumptions used on its program page:
| Home type | Example market value | Buyer’s 60% share | Province’s initial 40% share | Minimum 5% presale deposit on buyer’s share |
|---|---|---|---|---|
| Studio | $620,000 | $372,000 | $248,000 | $18,600 |
| One bedroom | $850,000 | $510,000 | $340,000 | $25,500 |
| Two bedroom | $1,300,000 | $780,000 | $520,000 | $39,000 |
| Three bedroom | $1,500,000 | $900,000 | $600,000 | $45,000 |
These examples are not current price promises. They are most useful as a way to understand the arithmetic. A two-bedroom home with a $1.3-million market value would require the buyer to fund a $780,000 purchase share, while $520,000 would be carried through the provincial arrangement.
Who can qualify
The published income limits are based on 2024 figures and apply when the buyer qualifies at presale. Households seeking a studio or one-bedroom home must have annual income below $131,950 and net household assets below $150,000. For a home with two or more bedrooms, the published limits are income below $191,910 and net assets below $250,000.
The Province also says:
- buyers must be Canadian citizens or permanent residents;
- at least one buyer must have lived in British Columbia for the previous 24 consecutive months;
- buyers must be at least 18;
- buyers cannot hold an interest in another property anywhere in the world at closing;
- buyers must prequalify for a mortgage and have the required deposit; and
- the Heather Lands home must be used as the owner’s principal residence.
Some assets are excluded from the published calculation, including RRSPs, RESPs and RDSPs, while cash, investments, real-estate equity and private-company equity are generally included. Because the limits may be updated before sales begin, buyers should use the final eligibility package rather than relying only on the figures above.
First-time buyers living in B.C. are expected to receive the first priority. Previous owners who no longer own property may follow, along with current owners who have minor children and will sell their existing home before closing. Our first-time home buyer section can help with the broader preparation, but Heather Lands has its own qualification and priority rules.
What happens when you sell—or reach 25 years
A buyer can sell after taking possession, but the first resale is governed by the program’s repayment and appreciation-sharing rules. The Province says the original buyer’s share of any market appreciation is 0% during the first year of occupancy, 20% during the second year, 40% during the third year and 60% from the fourth year through year 25.
The same provincial guidance says that leaving the program before 25 years requires repayment equal to 40% of the home’s market value at that time. In practical terms, a buyer should not estimate future sale proceeds by simply taking the sale price and subtracting the remaining bank mortgage. The provincial repayment, the applicable appreciation share, mortgage discharge costs, legal fees and selling expenses all affect the amount left for the owner.
If the owner has not sold by the end of 25 years, the published rule is different: the original 40% purchase-price portion must be repaid or privately refinanced, together with 1.5% interest compounded annually. Once that obligation is paid, the owner leaves the program and may keep 100% of future appreciation.
The formal disclosure statement, lease, provincial financing agreement and resale formula will matter more than any summary. A real-estate lawyer should review all four before a buyer removes conditions or commits a deposit.
The leasehold and carrying costs still matter
Heather Lands buyers will own a strata leasehold interest for 99 years rather than the underlying land. That does not make the home a rental, but it does mean the lease terms become part of the property’s value, mortgageability and resale. Buyers should ask how the lease handles assignment, default, insurance, strata governance, remaining term and the end of the 99 years.
The lower initial purchase financing also does not reduce every ownership cost. The Province says property transfer tax and any First-Time Home Buyers’ Program calculation will use the home’s full market value, not the buyer’s 60% share. The owner is also responsible for property taxes, utilities, strata fees and special levies.
For that reason, the most useful affordability test is not “Can I qualify for the 60% mortgage?” It is “Can I carry the mortgage, taxes, strata costs, insurance and maintenance while also planning for the provincial repayment?”
Where the Heather Lands project stands now
Vancouver City Council approved the revised Heather Lands rezoning in principle on March 31, 2026, subject to conditions. The decision covers a multi-phase, mixed-use plan with buildings ranging from four to 46 storeys and a combined gross floor area of 317,861 square metres.
The updated City material refers to approximately 2,940 attainable leasehold homes, while the Province’s older 2024 overview still says approximately 2,600. Those figures describe different versions of the plan; the later City material is the better source for the approved-in-principle rezoning scale.
The public New Village project site now accepts registrations for updates and says its discovery centre is opening soon. Its own disclaimer also says the site is not an offering for sale. Registering interest is therefore not the same as completing formal eligibility, receiving an allocation or signing a presale contract.
A buyer’s checklist before committing
- Confirm the final income, asset, residency and property-ownership rules that apply on the presale date.
- Ask a lender to prequalify you for this specific 99-year strata leasehold and 60/40 financing structure.
- Budget from the full market value when estimating property transfer tax and other ownership costs.
- Request the complete provincial financing agreement and have the sale, early-exit and 25-year repayment formulas explained in dollars.
- Review the lease, disclosure statement, estimated strata budget, insurance and development timeline with a B.C. real-estate lawyer.
- Treat project-update registration as an information step—not as approval, a reservation or an offer for sale.
Heather Lands could reduce the mortgage an eligible buyer needs at the beginning. The trade-off is a long-term provincial obligation and a leasehold structure that must be understood just as carefully as the home’s price and monthly payment.
Sources
- Government of British Columbia — Attainable Housing Initiative Heather Lands (published 2024-09-19; accessed 2026-07-27)
- City of Vancouver — Council Meeting Minutes, March 31, 2026 (published 2026-03-31)
- City of Vancouver — Roundup of Business at City Council for the Week of March 30, 2026 (published 2026-04-02)
- City of Vancouver — Heather Lands Rezoning Information Memorandum (dated 2026-03-26)
