Homeownership -
Frequently asked questions
FAQs
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The first step is to take our Eligibility Questionnaire.
If your family meets the preliminary criteria for a home, you will be put on our wait list for future projects. Once Habitat Victoria has purchased land and knows the configuration of homes it will be building, you will be contacted.
Once you reply that you are still interested, you will then be sent a Homeownership Application.
The completed application must be returned within 14 days. Your application will be reviewed and we will contact you if more information is required.
If you continue to meet the requirements you will be sent the instructions for the next step. The next step is receiving a checklist of supporting documentation we need to receive to continue evaluating your application. At this time a credit check will be completed.
Your complete application with supporting documentation will be reviewed and, if approved, a home visit with the Family Selection Committee will be arranged. All family members must be available for the visit.
If approved by the Committee your application will be presented to the Board of Directors for final approval. This approval will contain specific requirements including demonstrating financial capacity to secure a mortgage.
Your family will meet with the Chief Executive Officer to sign a "Letter of Intent" and begin 500 hours of volunteer service.
You will be required to obtain pre-approval for a mortgage with our partner lender.
Once a home is ready and your family has completed 500 hours of volunteer service, you be sold the home at fair market value. You must qualify for a conventional (bank) mortgage for up to 70% of the value of the home. Habitat Victoria will hold the second, interest free mortgage for the remainder of the value of the home.
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The average process time from completing the expression of interest to having the application approved takes approximately 2 – 4 months. Please note, this time frame is not the same as the period from approval to the occupancy date for an approved home. The period before occupancy can vary from between 3-24 months after being approved, depending on the specifics of the project and when the home is ready.
If we do not have a current build project we may hold applications until we do.
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Safe, decent, entry-level, affordable;
Meets all building codes and municipal requirements;
May have carpet, laminate and/or linoleum flooring;
Two new base appliances (white): refrigerator and stove; and
Actual home sizes will vary by project
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You will become a Habitat Victoria ambassador. Helping spread the word about our work in the community and speaking positively about how Habitat Victoria has helped your family. Publicity is important because it helps bring in new volunteers and funds for more homes so more families can be helped.
You may continue to support Habitat Victoria through working as a volunteer in our ReStores or our various events throughout the year.
You will make regular monthly payments on your mortgage.
You will disclose your income to Habitat Victoria on an annual basis to ensure your payments remain at 30% of your household income.
You will maintain your home in good repair.
You are a good neighbor
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Any interior work must first be approved by Habitat Victoria and building permits must be attained. Work quality must be to Habitat’s standards.
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Habitat Victoria will sell the home to the family at a pre-determined price. Families in a position to do so must place a down payment on the home, but if your family does not have available finances a down payment will not be required. Your monthly payments will be set at 30% of your gross household income. Habitat Victoria partners with a conventional lender and the family will be required to qualify for an interest bearing mortgage for up to 70% of the value of the home. Habitat offers the remainder of the mortgage at 0% interest to ensure affordability. A family who falls behind in their mortgage payments could lose their home.
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Mortgage payments consist of 30% of your gross household income. The payment is inclusive of both mortgage payments, property taxes, strata fee (if applicable).
Your payments may never drop below the amount you were qualified at.
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The minimum and maximum household income varies for each project based on unit size, area, market value price of the unit and other such factors. We calculate the minimum income requirement based on the mortgage required for the value of the home and to ensure the family can afford the mortgage. We always aim to set our family up for success!
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A shared equity model lowers the cost of homeownership for families and in exchange the equity in the home is shared between the Habitat homeowner and Habitat Victoria. Families can obtain a mortgage that is affordable to them based on their income and we provide an additional mortgage for the difference. Thus, giving families a hand-up to be able to afford and purchase a home that would otherwise not be possible.
You will grow wealth as you live in your Habitat Home by:
Paying off your mortgage, or what we call the Principal Paydown.
Earning 2% gain, that is compounded monthly, on the total value of your first mortgage (regardless of what you have paid off)..
How our mortgage model works at a glance:
Getting in the door…
Your family purchases the home at a predetermined price.
You obtain a first mortgage from one of our partner credit unions based on your income.
Habitat Victoria then provides a second mortgage for the difference between the first mortgage and market value of the home.
Family size and configuration is considered.
Approved families undertake 500 volunteer hours as part of their partnership.
Staying in your home…
Habitat for Humanity Victoria helps keep payments affordable, initially set at 30% of your household income.
We support you throughout your Habitat Homeownership journey.
Long term affordability…
Habitat for Humanity Victoria will buy your home back when you are ready to sell and help another family just like yours!
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Your family must pay for their own legal costs when you purchase the home. We recommend setting aside $2500-$3000 for this expense.
Depending on the type of home you purchase (Strata or Free hold) there may be additional home insurance fees.
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Our primary objective at Habitat for Humanity Victoria is to provide safe and affordable housing to families living with low-moderate incomes. Our model is based on a written partnership agreement and we work closely with each family to ensure participants are clear on the terms of the agreement, including their obligations to meet our program requirements.
At Habitat, we take the decision to end a partnership agreement extremely seriously. To ensure the integrity and long-term sustainability of our program, decisions like this are sometimes necessary. We are committed to doing everything in our power to assist the family as they transition out of the program.
As always, our organization remains committed to providing safe and affordable housing to families in need and will continue to deliver on this mission.