FAQs
homeownership
No down payment required
Affordable mortgage payments that are 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 10 years.
A longer amortization period is available for the interest-bearing mortgage (25 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. Like any other homeowner, they also share in market depreciation if the value of the home goes down.
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 financial capacity (including credit), employment, and willingness to pay interest on the first mortgage.
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 24 months. Homeowners then purchase their homes at fair market value from Habitat.
Besides their monthly mortgage payment, homeowners are responsible for budgeting and covering additional costs such as legal fees related to the mortgage transaction, appliances, home maintenance and repairs, insurance, property taxes, condo fees (if applicable), and utilities.
Like any homeowner in the open market, Habitat homeowners must also pay regular taxes and insurance, maintain their home, and cover the cost of any damages before selling the home back to Habitat.
For those living in a condo, monthly condo fees are paid directly to the Property Management Company.
In addition, Habitat will charge and reconcile fees at the end of ownership for exterior components that were not properly repaired or maintained.
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.
- Less than 2 years of employment experience, and/or unstable employment (casual, term, or contract employment).
- Income is from self-employment.
- Income relies on social assistance programs.
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. Our homeownership mortgages include an interest component. We partner with a reputable financial institution to provide a market rate on a bank mortgage of 50% of the home value, while the remaining 50% of the home value is financed by Habitat interest-free for 10 years. The first mortgage payment is 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 assess whether the program is a good fit for the applicant(s).
Habitat wants all homeowners to succeed. Credit checks help determine readiness for homeownership. Debt ratios and credit scores are standard measures of whether someone can afford the home and how they manage loans and credit. A higher credit score and a lower amount of debt mean the applicant is better positioned for success.
Under Habitat’s current guidelines, these forms of income are not accepted 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.
Like any homeowner, it is your responsibility to save for life’s unexpected events and emergencies so that you can pay your mortgage payment every month.
As a homeowner, you are free to make changes to your house. However, if you are planning a major project, we encourage you to contact us first. We can provide guidance to help ensure you get the best return on your investment.
When you obtain a first mortgage through a financial institution, it is locked into a 5-year term. This means your mortgage payments — covering principal and interest but excluding taxes, insurance, and condo fees — will remain the same for the full 5 years.
At the end of the term, your lender will present a selection of new rates and terms based on current market conditions.
In the 9th year of homeownership, Habitat will contact the homeowner to discuss next steps: either repurchasing the home or extending the agreement for another 5 years. For homeowners who stay beyond 10 years, an additional fee—at management’s discretion—may apply, up to a maximum of 5% of the home’s market value.
To prepare, we encourage you to contact a realtor to determine the current market value of your home. This will help you review your financial position and options.
Besides their monthly mortgage payment, homeowners are responsible for budgeting for additional costs, including legal fees related to the mortgage transaction, appliances, home maintenance and repairs, insurance, property taxes, condo fees, and utilities.
As with any open-market mortgage, homeowners must also pay regular taxes and insurance, maintain their homes, and cover the cost of any damages before selling the home back to Habitat.
For those living in a condo, monthly condo fees must be paid directly to the Property Management Company.
In addition, Habitat will charge and reconcile fees at the end of ownership for exterior components that were not properly repaired or maintained.
Market appreciation is dependent on the homeowner completing all of their required volunteer hours and financial courses.
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 5-8 years, you will receive 25%.
If you sell the home back to Habitat between 8-9 years, you will receive 40%.
If you sell the home back to Habitat after 9 years, you will receive 50%.
There is no cap.
As a Habitat homeowner, you are not protected from market depreciation. Like any other homeowner, you are exposed to normal market conditions.
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.
Possibly. Habitat considers donations of homes or land on a case-by-case basis. Please contact us to discuss the details.
volunteering
No. Experience is not necessary! However, volunteers must:
- Be willing to learn new skills to apply to different situations
- Be able to follow instructions independently
- Be able to climb stairs comfortably
- Have adequate vision
- Be able to speak conversational English
- Be able to lift and carry at least 15 pounds
Our minimum volunteer age is 16, and anyone under age 18 must be accompanied by a parent or legal guardian.
Click here to register as volunteer! Once you’ve registered, you can sign in at any time and click the “Schedule a Shift” button to access our online shift scheduler. If you have any troubles finding the opportunity you are looking for, please reach out to us by email or at 780-479-3566.
No. Volunteering with Habitat is as easy as registering as a volunteer on our website and signing up for a shift. A site and safety orientation will occur at the beginning of your first volunteer shift.
We are looking for a specific number of volunteers for each day, therefore we kindly ask that volunteers sign-up for shifts beforehand.
When you sign-up for a shift, you’ll be sent a confirmation e-mail that includes your volunteer day information, including a map that shows the location.
When you sign up for your volunteer shift, you will receive a confirmation e-mail that outlines the volunteer information that is specific to your site, including what to bring and wear for the day.
Yes. Volunteers must wear CSA (green triangle) certified steel-toe shoes while volunteering with us. If you don’t have your own, we have pairs available for your day on site.
Our ReStores offer flexible half-day shifts in both the morning and the afternoon.
This depends on the situation. Please reach out to us by email or by phone at 780-479-3566 to discuss the possibility of modified volunteering.
Please reach out us by email or by phone at 780-479-3566. We will provide you a copy of your volunteer history and accumulated hours.
Yes. Please reach out us by email or by phone (780-479-3566) to find out if the homeowner you have in mind is eligible to receive donated hours, and the process for donating.
We are glad to provide you with a letter of contribution that outlines your completed volunteer hours, site location(s), and how long you’ve volunteered.
Please request your letter by email or phone (780-479-3566).
ReStore
Our aim is to sell quality products while raising funds for Habitat for Humanity’s charitable work. When an item is donated to ReStore, our staff research the current retail cost for the item. Once a comparative price has been established, we examine its condition and then price it fairly for sale in our store.
Monday – Saturday; 9:30 am – 5:00 pm.
ReStore plays a critical role in funding the Habitat homes we build for families in need of affordable homeownership in our communities. Shopping at ReStore is both a socially-conscious and environmentally-sound decision. It extends the value of quality new and used household goods and building materials and limits unnecessary waste, decreasing our collective carbon footprint.
Like most social enterprises, the Habitat ReStore incurs costs to operate. We pay for buildings, maintenance, utilities, staff, donation trucks, and more.
Once these costs have been covered, 100% of the remaining funds are sent to Habitat for Humanity to help families gain access to affordable homeownership. The reason ReStore exists is to provide funding for Habitat’s charitable work in our community.
To discuss the details of our pricing and operation model, or how you or your business can support Restore through the donation of excess inventory and other products, please feel free to call us at 780-479-3566.
Unfortunately, we do not have a delivery service at this time. However, each store has third party contacts that can help you with delivery at an affordable rate.
Yes! ReStore can schedule a donation pick up from your home or business. Please touch base with our Donations Coordinator at 780-477-4057, or use our online request form!
Within 7 days of your purchase, and with your original receipt, you may return your item to the store you purchased it from for an in-store credit. This credit does not expire and can be used at any Habitat Edmonton or Sherwood Park ReStore. Our stores do not provide cash/credit/debit refunds.
Yes! Our stores accept donations from 9:30 am – 4:30 pm, Monday to Saturday. A store associate will be able to assist you in unloading your donation at the Donations Bay.
