Prescribed Interest Rate Loan (PIRL)

The Prescribed Interest Rate Loan (PIRL) option provides approved faculty members a one-time loan to assist with the purchase of a principal residence anywhere in Metro Vancouver. The PIRL (loan) terms include:

  • Once participation is approved, the loan does not need to be used right away. It may be activated or used anytime within 10 years of participation approval or appointment date, whichever is later.
  • Once activated and PIRL funds are advanced for a home purchase, the loan is repayable in 15 years from that point, with no principal payments until the 15 year term expires, or at end of employment with UBC, whichever comes first;
  • The faculty member must pay annual interest equal to the Canada Revenue Agency (CRA) prescribed interest rate;
  • The loan is for the purpose of supplementing the purchase of a principal residence (it also must be their only residence) in Metro Vancouver.

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 for strategic recruitment and retention purposes.  The PIRL option is stackable with  the existing Down Payment Assistance (DPA) program.

Tenured faculty will have the highest priority consideration for this program. A summary of eligibility terms is included here:
Eligibility

Application instructions and forms will be posted here soon:
Application Process

The approval and consideration process is outlined here:
Approval and Consideration Process

The payment and repayment details are provided here:
Payment and Repayment

The following conditions would trigger the repayment of the PIRL:
Repayment Triggers

More detailed description of the PIRL program as approved by Board can be found here:
Detailed Program Description

A sample calculator is available here:
Sample Calculator

 


Background Context

The new PIRL loan option is part of the 10-Year Faculty Housing Strategy approved Dec 2016. The PIRL program design responds to consultation with faculty, recruiters, and the Board since June 2015, where strong interest was expressed for a more flexible loan program for recruiting and retention purposes.  These loans are meant to give faculty greater flexibility to purchase homes both on and off campus, both new and resale, in a way that does not generate taxable benefits for faculty participants. This loan program replaces the earlier Second Mortgage Loan pilot program that ran from 2014-2016. More detail on earlier consultation input in the development of this PIRL option, can be found in the 2015 Faculty Consultation report.

*Note: PIRL Transition Option for Pre-approved 2nd Mortgage Loan Participants who have not yet purchased in Metro Vancouver

Approved participants in the now closed pilot 2nd Mortgage Loan program that ran from 2014-2016 continue to be eligible to purchase under the original terms of that program until the end of their respective approved terms (March 2017 for Cycle 1 and 2 participants and September 2017 for Cycle 3 participants) or, if they have not yet purchased a home in Metro Vancouver, they can alternatively opt to use a Prescribed Interest Rate Loan (PIRL) value $250,000 or 33% of the value of the home purchase, whichever is less, to be exercised within 5 years of January 1st, 2017.