Prescribed interest rate loans

This is a limited-access program with limited funds. Approved applicants and loan values will be determined solely on the basis of case-by-case merit assessment based on UBC's strategic recruitment and retention goals. The PIRL option is stackable with the existing down payment assistance program. 

Tenured faculty will have the highest priority consideration for this program. ​​​​​​

Eligibility is limited to full-time tenured and tenure-track faculty (including grant tenured and grant tenure-track faculty). With a limited supply of funds, the allocation of these loans shall be guided by and clearly reflect UBC’s strategic goals and priorities in recruitment and retention.

Here's who's eligible to apply:

• Full-time tenured faculty members: Associate or full professors in the research stream, senior instructor or professor of teaching in the teaching stream
• Full-time tenure-track faculty members: Assistant professor in the research stream, Instructor I in the teaching stream

Priority will be given to the tenured faculty and those of highest strategic consideration for recruitment or retention cases for that year, through an adjudication process overseen by the provost office.

• The borrower (borrower and spouse, if applicable) will need to qualify for a first mortgage loan amount through a financial institution of their choice to be eligible for this program, unless they have sufficient funds to complete the purchase without a first mortgage loan.
• UBC will be the lender of the prescribed interest rate loan; UBC will take a second mortgage secured by the property.
• UBC will require that your minimum equity in the purchased home be 5%, which means that 5% of the purchase price of the home must be your own funds, and not be borrowed funds.
• There's no maximum home purchase price; however, the property must be either a newly constructed or resale unit in Metro Vancouver.
• The home must be the principal residence of the borrower.
• The borrower cannot own any other property in Metro Vancouver while the prescribed interest rate loan remains outstanding; however they can own a property outside of Metro Vancouver.
• Borrowers will not be entitled to refinance their home unless:
  • the refinancing is for the purpose of repaying the prescribed interest rate loan in full; or
  • the purchaser is refinancing or renewing their first mortgage where the mortgage amount is less than or equal to the then outstanding first mortgage balance.
• Any other financing related to the property is subject to UBC’s approval.

See the detailed eligibility and allocation guidelines (pdf) to guide loan program access, and note that they're amended from time to time.

• UBC's housing and relocation services office, on behalf of the UBC provost office, will coordinate the internal processing and tracking of the application once the application package (with associated documents) is complete.
• The strategic and academic merit review is undertaken by the provost office in consultation with deans.
• The final decision-making authority rests with the provost’s office.

Communication of results

UBC's Housing and Relocation Services team will communicate the provost office's decision to the dean. The dean or delegated department head or program director will then communicate the results to the faculty member.

How long it takes

Typically the full loan application review process should take about 4-6 weeks after submission of a complete application package. Complex applications may take longer.

There's no limit on the number of times a faculty member can apply to be considered.

If you have questions, please email the Housing and Relocations Services office or call them at 604 822 5350.

• UBC will require faculty to pay annual interest at the Canada Revenue Agency (CRA) prescribed interest rate, so that no taxable benefit will be received by the individual faculty member.
• The loan principal would be due on the 15th anniversary of the date the funds were advanced to the faculty member.
• Should the faculty member wish to repay the loan earlier than the due date, payment must be received two weeks prior to the anniversary date of the loan. Partial payment(s) of less than $5,000 will not be accepted and any amounts over $5,000 must be in $1,000 increments. The repayment will be credited on the loan anniversary date if received two weeks prior to the anniversary date.
• Property purchased with any prescribed interest rate loan can be resold to anyone without restriction.
• Faculty members may make repayments without any penalties.

Initial interest rate and changes

Annual interest on the prescribed interest rate loan will be set at the CRA-prescribed rate at the time the money is advanced. This is the “initial interest rate” that will be charged on the loan for the first five years. However, because the CRA reviews the prescribed rate on a quarterly basis, it's possible for the prescribed rate to change during the first five years.

If ...

• the CRA prescribed interest rate increases above the Initial Interest Rate, UBC will continue to charge the Initial Interest Rate.
• the CRA prescribed rate decreases below the initial Interest Rate, UBC will change the newer lower interest rate.

At the end of five years, the initial interest rate prescribed rate will be reset to the then applicable prescribed rate as determined by the CRA. This reset interest rate will then apply for another five-year period, with adjustments as set out above.

The PIRL must be repaid upon:

• 15 years from the date the funds were advanced, or such other date as UBC has, at its sole discretion, agreed to. No loan extensions will be given if Metro Vancouver homes have appreciated more than an average of 1% per annum over the previous 15 calendar years;
• the sale of the home;
• demand of repayment of the PIRL (which may occur on the conditions outlined below); or
• when the borrower chooses to repay the PIRL

There are no restrictions on to whom the home may be sold, but it must be sold for fair market value.

Sale of the home

When the borrower chooses to sell, upon closing of the sale of the home, the borrower must repay the loan with the sale proceeds after repaying the first mortgage. As described above, when the home is sold, repayment of the loan will be due. The then outstanding principal balance of the loan will be fully repayable.

Borrowers will be responsible for all closing costs and mortgage penalties, if applicable.

Demand of repayment of the loan

The loan becomes due and payable within 180 days of demand upon the earlier of:

1. After the loan has been outstanding for 15 years; or such other date as UBC has, in its sole discretion, agreed to; or...
2. The occurrence of one of the following policy driven repayment triggering events:

• The borrower is no longer employed by UBC;
• The borrower is no longer a tenured or tenure track faculty at UBC or if retired faculty lose their emeritus/emerita status;
• Upon full retirement where the borrower has been a full time employee of UBC for less than 15 years;
• Upon full retirement where the borrower has been a full time employee of UBC for more than 15 years but has not met professor emeritus/emeriti requirements;
• Upon the settlement/agreement in the case of divorce/separation where the borrower is not able to keep the home as their principal residence;
• The borrower purchases or acquires, through any means, another dwelling unit in Metro Vancouver;
• If the home is being rented (outside of a UBC approved leave) and/or not being used as the borrowers principal residence; or
• Upon the death of the borrower, in which case the loan becomes due and payable within one year of demand.

The borrower will be required to assign a portion of their wages to UBC in the event that they fail to repay the amount due under the loan. UBC will have all other remedies available to a creditor to recover the total funds owing.

See the detailed program description (pdf)