Homeownership FAQ

FAQs

The average process time from completing the pre-application form to having the application approved takes approximately 6 months to 1 year. 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. 

  • Safe, decent, entry-level, affordable;  
  • Meets all building codes and municipal requirements; 
  • May have carpet, laminate and/or linoleum flooring; 
  • New appliances; and  
  • Actual home sizes will vary by project 
  • You will become a Habitat PEI ambassador. Helping spread the word about our work in the community and speaking positively about how Habitat PEI 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 PEI 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 PEI on an annual basis to ensure your payments remain at 30% of your household income.
  • You will maintain your home in good condition.
  • You are a good neighbor.

Habitat PEI will sell the home to the family at a pre-determined price. Your monthly payments will be set at no more than 30% of your gross household income. Habitat PEI partners with a conventional lender and the family will be required to qualify for an interest bearing mortgage for up to 50% of the value of the home. Habitat offers the remainder of the mortgage at 0% interest to ensure affordability. Mortgage payments are a priority and if a family falls behind in their payments they could risk losing their home.

Mortgage payments consist of no more than 30% of your gross household income. The mortgage payment consists of principal, property taxes, interest (applicable with the first mortgage), and condo fee (if applicable).  

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!

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 PEI. 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: 

  1. Paying off your mortgage, or what we call the Principal Paydown. 
  2. Earning 2% gain, that is compounded annually, 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 financial institutions based on your income. 
  • Habitat PEI 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 PEI helps keep payments affordable, set at no more than 30% of your gross household income. 
  • We support you throughout your Habitat Homeownership journey. 

Long term affordability… 

  • Habitat for Humanity PEI will buy your home back when you are ready and it is time to sell and help another family just like yours! 

  • Your family must pay for their own legal costs when you purchase the home. We recommend setting aside at least $1000 for this expense. 
  • Depending on the type of home you purchase there may be additional home insurance fees. (Condo)

Our primary objective at Habitat for Humanity PEI is to provide safe and affordable housing to families living with 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.