homeownership
Through our unique affordable homeownership program, we offer families a hand up, empowering them to build strength, stability and self-reliance.
expression of interest
We are not accepting applications at this time. Please check back frequently for details on upcoming build projects.
become a habitat homeowner
At Habitat for Humanity Newfoundland and Labrador we help families move into places they can call home, and build strength, stability, and self-reliance through affordable homeownership. An affordable mortgage facilitated through Habitat NL brings homeownership within reach for an increasing number of families that are being priced out of the market.
The Habitat homeownership model helps working families realize their dream of owning a home. Families purchase their home at the fair market value and commit volunteer hours to help build Habitat homes and community connections.
Habitat homeowners will obtain an affordable interest-bearing first mortgage from our financial partner, the Newfoundland and Labrador Credit Union, and an interest-free second mortgage from Habitat NL. There is no downpayment required to purchase a Habitat home (families are required to cover closing costs).
Total mortgage payments are set at 30% of the gross household income. This model provides stability for the family, and the chance to build a secure future for themselves and their children. We provide families with the coaching, education, and support to be successful first-time homeowners.
eligibility requirements
What do you need to know about becoming a Habitat for Humanity Newfoundland and Labrador Homeowner?
Minimum Requirements
The following are Habitat for Humanity NL’s minimum requirements. Families must meet these requirements to be considered for the Affordable Homeownership Program.
- All families are welcome to apply, however, applicants with at least one child at or under the age of 16 will be given priority.
- Everyone moving into a Habitat home must be a Canadian citizen or Permanent Resident.
- Applicants and co-applicants must have lived within the build area for at least two (2) years prior to the date of application.
- No bankruptcies – must be discharged at least three (3) years ago.
- Potential applicants and co-applicants must be first time homebuyers.
- Total family income before taxes falls between $35,000 – $65,000.
- Successful candidates must have a primary, stable employment income that is full-time or equivalent. Employment Insurance, Income Support, Long-Term Disability, and/or Child Tax Credits alone are not sufficient sources of income, however, they may or may not be considered a supplemental source of income on a case-by-case basis.
Beyond the minimum requirements, Habitat for Humanity NL uses the following three principles to select partner families: ability to pay an affordable mortgage, willingness to partner with Habitat for Humanity NL, and need for affordable housing.
Ability to Pay an Affordable Mortgage
Families must demonstrate their ability to pay an affordable mortgage, sound financial management, and qualify with our mortgage partner though the following:
- Stable employment income that fits within our established income bands.
- Responsible debt management.
- Fair or better credit report.
- The primary source of income for the family must be employment income.
- The family’s Gross Household Income must be sufficient to cover the cost of homeownership.
- Applicants and co-applicants will be asked to submit several documents to support financial status, including but not limited to current employment proof, debt statements, a current credit report and asset statements.
Willingness to Partner with Habitat for Humanity
Each family approved for homeownership through Habitat for Humanity becomes a partner in our work, and as such are asked to help with a variety of initiatives that advance our mission.
- Be an ambassador for Habitat NL and represent our mission by understanding and agreeing with our model, and speaking about your experience with Habitat at events, through interviews, or in videos to promote our work in the community. Sharing your success helps promote Habitat NL so more families can be helped.
- Contribute 500 volunteer hours towards the construction of our homes, and various other Habitat projects and initiatives before move-in.
- Commit to Habitat for Humanity NL’s partnership agreements and mortgage documents.
- Attend homeowner information workshops.
Need for Affordable Housing
Habitat homeowners are also selected based on their need for better housing.
- Families must not be eligible for a conventional mortgage and cannot own any real estate or property (ie., house, cabin, land).
- Families will be considered for a Habitat home if their present housing costs are too high (for example if the basic shelter costs are more than 30% of the total household income).
- Families will be considered for a Habitat home if their present housing is inadequate, overcrowded, unsafe or unhealthy.
stories
frequently asked questions
Q: How do I get a Habitat Newfoundland & Labrador (NL) application form?
A: Habitat for Humanity NL screens applicants very carefully, to ensure families can afford, are ready for, and can manage the commitment of owning a home. The application process is thorough and will take several months. The first step is to complete an Expression of Interest form. This form is used to determine if your family meets our minimum requirements and can be found on our website.
Once submitted you will receive an email from Habitat NL letting you know about our next steps, or if you did not qualify.
Q: What is the Habitat NL application process?
A: You will receive an email within 2-4 weeks stating whether you are eligible for the Affordable Homeownership Program based on the responses provided on your Expression of Interest form. If eligible, you will receive the invitation to attend an informational session.
During the informational session, families will receive full details about the Affordable Homeownership Program, the mortgage model, and project profile. You will receive an application package that is to be submitted to HFHNL by a determined date.
Once we receive your completed application package, the review process takes anywhere between 1-3 months. This will include follow-up phone calls and a home visit. Applying does not guarantee acceptance to the program, as demand is greater than availability. You will be advised in writing if you are not accepted into the program.
Q: Why didn’t I qualify?
A: 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 Expression of Interest form. Some 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).
At every step in the process, if your application is deferred or rejected you will receive this information in writing, and an explanation will be provided.
Q: How long does the process take?
A: The average process time from completing the eligibility questionnaire to having your application approved by Habitat for Humanity NL is approximately 1-3 months.
Q: When are Habitat homes ready for move-in?
A: Before Future Habitat Homeowners can move into their home, the home needs to be built and ready for occupancy, and your 500 volunteer hours needs to be completed.
Q: What are Income Thresholds? What is household income?
A: Habitat for Humanity NL has established clear income thresholds. Families – regardless of family size – must have a TOTAL household income between $35,000 – $65,000. These income bands are based on census data for our area and will be revised annually. We try to establish income thresholds that set our families up for success.
Household income is the combined gross (before tax) income of all adult members of the household. Supplemental sources of income (Child Tax Benefit, Employment Insurance, Child Support, etc.), may or may not be included and will be considered on a case-by-case basis.
Q: Does the mortgage contain an interest component?
A: Yes. A family’s mortgage will be split between the Newfoundland and Labrador Credit Union and Habitat for Humanity NL, with NLCU offering a below market interest rate on the first mortgage, and Habitat taking the second mortgage and collecting 0% interest.
This new model will see improved, long-term benefits for families while ensuring Habitat for Humanity can continue to serve even more local families in a sustainable and effective manner.
Q: Why are families with children given priority?
A: The strength, stability, and self-reliance that owning an affordable home provides will have the greatest impact on households with children.
The stability that affordable homeownership provides is an opportunity for children to be healthier, to do better in school, and to reach their full potential. Focusing our limited capacity to build homes on families with children helps this generation, and the next.
Q: What is involved in the required volunteer hours?
A: Habitat NL requires each family to commit to 500 volunteer hours. There is no financial compensation for these volunteer hours. Volunteer hours accumulate once the family has officially been selected to join the Affordable Homeownership Program.
Examples of how to accumulate volunteer hours include: working on the Habitat build site to construct one’s own home or the homes of others; participating in Habitat media campaign and fundraising events; office work; volunteering in our ReStore; attending homeowner training workshops as well as local community volunteerism. Children can contribute to volunteer hours through school grades and activities. There are limits set on the number of hours family members can volunteer on any one activity so that volunteer hours are spread across various activities.
Up to five additional family members (other than those who will be residing in the home) and/or friends can also contribute to the required hours.
homeownership questions
For questions regarding Homeownership, please contact our Manager of Family Services, Erin Butler at ebutler@habitatnl.ca or call 709 753-5743 ext 3.
Land Acknowledgement
We respectfully acknowledge the land on which we gather as the ancestral homelands of the Beothuk, whose culture has been lost forever and can never be recovered.
We also acknowledge the island of Ktaqmkuk (Newfoundland) as the unceded, traditional territory of the Beothuk and the Mi’kmaq. And we acknowledge Labrador as the traditional and ancestral homelands of the Innu of Nitassinan, the Inuit of Nunatsiavut, and the Inuit of NunatuKavut.
We recognize all First Peoples who were here before us, those who live with us now, and the seven generations to come. As First Peoples have done since time immemorial, we strive to be responsible stewards of the land and to respect the cultures, ceremonies, and traditions of all who call it home.
As we open our hearts and minds to the past, we commit ourselves to working in a spirit of truth and reconciliation to make a better future for all.