Own a Home

Overview of Habitat Homeownership

Habitat for Humanity Guelph Wellington bridges the gap for families, couples and individuals in the ‘missing middle’, who are unable to achieve homeownership on their own.

Our Affordable Homeownership Program removes barriers to traditional homeownership with:

• No or low down payment; applicants are required to cover closing costs
• Manageable mortgage payments, so your family has enough funds to cover other living expenses and needs
• Educational training and workshops designed to prepare you to become a Habitat Homeowner

Homeownership can provide social and financial stability to families, which opens up possibilities for your future and the future of your children.

How We Create Affordable Housing

Families approved for Habitat Homeownership receive support to purchase a home. Our program makes homes affordable by having favourable down payment options and by using a two-mortgage model:

• The first mortgage is secured with a conventional external lender and is provided at market interest rates. The applicant family would apply for a mortgage from one of Habitat Guelph Wellington’s lending partners, with the support of Habitat Guelph Wellington staff.
• The second passive mortgage is provided by Habitat Guelph Wellington at 0% interest and covers the difference between the purchase price of the home and the first mortgage. No payments are made on this mortgage until the 20-year term is complete. 

Applicants must cover the closing costs of the home, such as legal fees and land transfer taxes. This is generally 1-2% of the home value.

How Habitat Families Build Wealth

• Families approved for the Habitat Guelph Wellington Homeownership Program enter into a shared equity agreement, meaning families and Habitat Guelph Wellington share the home’s increase in value or appreciation
• When families make their mortgage payments on their first mortgage, they are building their equity by paying down their mortgage amount
• Families also build equity by earning appreciation (growth in value) on the value of the home. Appreciation will depend on the ratio from the first to the second mortgage
• This enables families to build wealth by simply making their affordable monthly mortgage payments