Reasonable repayment timelines and conditions are important to ensure that the Program continues to serve future generations of UBC faculty.
What are the Repayment Obligation Triggers for Repayment?
The kind of life event or change that could trigger a required repayment of your 2nd Mortgage Loan within 6 months, include but are not limited to:
- if you leave full time employment at UBC;
- if you no longer live in the home as a principle residence (except during a UBC-approved leave);
- retirement if the faculty member has less than 15 years of full time service to UBC or does not meet emeritus/a status;
- if you refinance the property for more than the outstanding 1st mortgage balance;
- if you acquire another residential unit in Metro Vancouver;
- if you leave tenure-track position for any reason (including you do not get tenure);
- your death, in which case the joint owner or your heir must repay the loan within 1 year.
Residents must annually confirm they continue to meet terms, conditions and eligibility requirements of the Program under which they purchased their home.
More information on occupancy obligations and repayment requirements are provided in Section 3.4 of the Eligibility, Allocation, and Occupancy Policies.
Repaying a 2nd Mortgage Loan
In order to ensure that funds return to the pool to allow continued support for future generations of UBC faculty, the 2nd Mortgage Loan is repayable at the earliest of the following events:
- 30 years, as per terms of the loan;
- the time of resale (which will be the most common repayment time);
- any time at the faculty member’s choosing; and
- whenever repayment obligations are triggered.
What is the Process When I Want to Repay?
2nd Mortgage Loan – the process includes but is not limited to the following steps:
- you must inform UBC and UBC Properties Trust of your intention to sell;
- the loan must be repaid when the sale closes;
- UBC can buy the property;
- you may sell the property to anyone;
- you must sell at fair market value;
- prices and conditions of sale must be approved by UBC Properties Trust;
- an appraisal can be required by UBC;
- the mortgage is repaid plus participating interest in any appreciation or depreciation.
- In the event of depreciation, you must pay the tax on the taxable benefit arising from a loan amount waived.
Where can I get more information?
For a printable PDF version of this webpage, please click here.