• No down payment required
• Affordable mortgage payments that are approximately half of what a comparable house payment would be using traditional financing.
• Approximately 50% of the home price is financed with below market interest rates on a first mortgage.
• Approximately 50% of the home price is financed by Habitat with a 0% interest second mortgage with no repayment required for 20 years.
• A longer amortization period is available for the interest-bearing mortgage (30 years).
• Homeowners do not have to pay costly mortgage default insurance:
  • Example: To purchase a $300,000 home on the open market the home buyer will pay approximately $11,400 in default insurance. This cost is added to the mortgage and is subject to interest charges over the life of the mortgage. You will not have this extra cost with Habitat Homeownership.
• Where renting allows for zero equity growth, Habitat Homeownership allows homeowners to create equity each month that grows through time. Homeowners are eligible to share in market appreciation on the home; if the market value of the home increases, homeowners share in the increased equity.

• Homeowners who currently either do not have the required down payment or whose income is below the typical income required by traditional banks are the focus of Habitat Homeownership.
• Homeowners qualify for Habitat's mortgage based on several factors, including need, financial capacity, and willingness to partner with Habitat. Learn more.

The first step to buying a Habitat home is to learn about our eligibility requirements.

• Each homeowner invests 500 hours volunteering for Habitat. These 500 hours are to be completed after they move into the home, and must be completed within 18 months. Homeowners then purchase their homes at fair market value from Habitat.
• The homeowner will make affordable monthly mortgage payments to bring stability to their housing situation and allowing them to build equity for a brighter future.

Besides the monthly mortgage payment, homeowners are responsible and must budget for costs associated with legal fees for the mortgage transaction, appliances, home maintenance, insurance, property taxes, condo fees, and utilities.

There could be a few reasons why a prospective homeowner does not meet the requirements. Please remember to review our eligibility criteria to learn about the minimum requirements before filling out the eligibility questionnaire. Common reasons for not meeting the program requirements are:

• Debt to income ratio is too high, credit score is too low, and/or income is above or below the affordability limits.
• Family size is smaller or larger than the unit size available.
• Less than 2 years of employment experience, and/or unstable employment (casual, term, or contract employment).
• Income is from self-employment

If you have secured a transfer of employment with your existing employer, please contact us at 780-479-3566.

Habitat sells homes to families at Fair Market Value as determined by an independent appraisal. Fair Market Value of a Habitat home will vary depending on the size, style and location of the home.

Yes. Homeownership mortgages offered by Habitat Edmonton include an interest component. We partner with a reputable financial institution to provide a discounted rate on a bank mortgage of approximately 50% of the home value, while the remaining 50% of the home value is financed by Habitat interest-free for 20 years. The monthly mortgage payment by a Habitat homeowner is less than half of what homeowners would pay in the open market on the same home.

• Habitat will verify employment, obtain housing and banking references, and check credit to make an assessment as to whether Habitat is an appropriate program for the applicant(s).
• Habitat wants all our homeowners to succeed. Credit checks ensure that families are ready to succeed as homeowners. Debt ratios and credit scores are standard measures of whether you can afford the home and how you manage loans/credit. The higher the credit score and lower the amount of debt, the better positioned you are for success.

Under Habitat’s current guidelines, these forms of income are not sufficient for homeownership. Employment income is the only source of income eligible when qualifying for a Habitat mortgage.

No. Under Habitat’s current guidelines, this form of income does not qualify.

It is your responsibility as a homeowner to save for life’s unexpected events and emergencies so that you can pay your mortgage payment every month.

• Homeowners take pride in owning their homes and treat their homes as a valuable asset. Homeowners are free to make minor changes to the home to suite their tastes. Minor improvements include paint, carpet changes, blind changes, and other cosmetic upgrades.
• Since Habitat homes are expected to be part of the ongoing Habitat home inventory, you must obtain Habitat’s permission before making any major changes or improvements to the home. Major changes include removal/addition of walls or any structural changes to the home.

• When you obtain a first mortgage through the financial institution, the mortgage is locked into a 5-year term. This means that your mortgage payments, including principal and interest (excluding taxes, insurance and condo fees), remain unchanged for the 5-year term.
• At the end of the 5 years, you will lock into the interest rate at that time for the next term.

In the 19th year of homeownership, Habitat will contact the homeowner to discuss the next steps. Habitat has the option (first right of refusal) to repurchase the home back from the homeowner.

• If you sell the home back to Habitat before your first mortgage term expires (5 years), you do not receive any of the increase in the value (home appreciation).
• If you sell the home back to Habitat between 5-10 years, you do receive 25% starting on the sixth year, and then increasing at the eleventh year to 40% (capped at 3% compounded annually).
  • Example: if the original sale value of the home was $300,000, but it has appreciated to a value of $350,000 by year eleven, then the homeowner will be entitled to $20,000 ($50,000 X 40%) in market appreciation.

As a Habitat homeowner, you are protected from market depreciation if the home has been well-maintained and is free of damage beyond normal wear and tear. If you have not properly maintained your home and there is damage that requires repairs, then you will be required to pay for the damage with funds taken out of your equity.

Habitat homeowners who belong to a condominium development will pay monthly condo fees. These fees fund exterior maintenance/replacement (roofing, siding, windows, parking lots, etc), and may include snow removal and lawn maintenance depending on how the condo corporation is organized.