Wednesday, 7 March 2018

How Canada’s Mortgage Stress Test Affects You

You’ve heard about the changes to mortgage rules. Now we explain what it means for prospective Options For Homes purchasers.

As Canadians ushered in 2018 with cheer and hopeful resolutions, the federal government rang in the New Year with a resolution of its own: to protect Canadians from amassing too much household debt. And so, the requirement for potential homebuyers to pass a mortgage stress test was announced.

The measure, which requires people to qualify for a mortgage at the current rate plus 2%, came amid a climate of record personal debt, overheated housing markets, and the return of increasing interest rates. The purpose is to ensure that those buying a home have the financial bandwidth to withstand interest rate hikes, something homeowners have been spared for nearly a decade.

The effect, however, is that your purchasing power – meaning the amount that can be borrowed for a mortgage – has been reduced. Told another way, it means that households now need a higher income to qualify for the same mortgage amount they would have qualified for before the new rules.

So what does this all mean for prospective Options for Homes purchasers, especially those who might be taking the Down Payment Loan (DPL)? We busted out the calculator and crunched some hypothetical numbers to help paint a clearer picture for you.

Let’s assume you’re looking at a small unit with a purchase price of $300,000. You’ve got a 5% down payment and are taking the Options DPL of 15%*. How much of a mortgage do you need?

Purchase Price: $300,000
5% down payment: $15,000
15%* Options DPL: $45,000
Mortgage required: $240,000

In the past, this size of a mortgage could be secured on a household income of roughly $56,000. Today, you’d need about $63,500. Of course, this wouldn’t affect the actual price of the unit, carrying costs, maintenance fees and taxes. It just means that the government wants to ensure you’re not so close to your financial limit that you couldn’t afford your mortgage if anything changed.

What does this look like if you’re hoping to purchase a larger, family-sized unit? Let’s assume a two-bedroom plus den was available for around $500,000. You’ve got a 5% down payment and are taking the Options DPL of 15%*. How much of a mortgage do you need?

Purchase Price: $500,000
5% down payment: $25,000
15%* Options DPL: $75,000
Mortgage required: $400,000

In the past, this size of a mortgage could be secured on a household income of roughly $93,000. Today, you’d need about $107,000.

While the stress test might seem like a bad thing, in fact, it’s a good way to make sure you can really afford the home you want to buy. Even without a mandated stress test, prudent homebuyers leave room in their finances to prepare themselves for fluctuating interest rates, unexpected life events, and inevitable home repair costs. Factoring an extra 2% is a good way to do that.

One interesting detail about the stress test is that credit unions are not currently bound by this requirement. Still, Nick Eddy, Bloor West Village branch manager at Meridian Credit Union, an Options For Homes lending partner, considers the new rule a “common sense lending approach.”

He advises clients looking to purchase a home to use the “rule of thumb” of borrowing no more than four times your annual household income for your mortgage. So if your household income is $80,000, you’d be looking in the $320,000 range. He also encourages people to be realistic. If the stress test suddenly makes securing a mortgage out of reach then “maybe now isn’t the right time for you to purchase and to keep saving,” says Nick.

“While we definitely want to help people realize their dream of homeownership, it’s a case of making sure you’re ready for everything that comes along with homeownership, which includes interest rate fluctuations.”

To make sure you’re ready, Nick recommends these three rock-solid home-buying preparation tips.

Limit the luxuries

“Make sure that you, as an individual, have done a budget for yourself. Do you have to go to Tim Hortons or Starbucks every day? There’s $20 to $50 a week you could save. Do you have to have the best new cell phone? That’s the other thing for people to really consider when they’re looking at buying a house or condo: what don’t you need. Are you willing to go out for dinner or get take out only once a week instead of three?”

Build in a buffer

“I think stress testing is a good thing from a budgeting perspective because people are worried about not being able to afford a property but at the same time, if rates do go up – and rates are rising now where they’ve been historically low for years – you’ve got to be able to comfortably afford to pay for the roof over your head. Adding a buffer is a good idea, even if you’re going through a lender that’s not affected by these changes. When you find a rate that’s average add 1-2% to that and see what that does to your monthly commitments because every five years, maybe the rate increases as do your monthly expenses.”

Prepare for the unpredicted

“Factor in other costs of homeownership. When you rent, your rent includes taxes and other things like repairs that your landlord pays for. When you own, these are costs of homeownership. Then there are things like lifestyle changes – maybe another child comes along or there’s a layoff in the family and you have to support the mortgage payment on one income. You need to be ready for that.”

To discuss your mortgage needs contact Nick Eddy at

*Down Payment Loan percentage is only an estimate. Actual percentage varies by development.

Monday, 5 March 2018

Options for Homes named an Affordable Housing Champion by the City of Toronto

Options for Homes (Options) has been delivering affordable homeownership housing for over 24 years, and now we’ve been recognized as an Affordable Housing Champion by the City of Toronto. We couldn’t be prouder! 

On Friday, March 2, the City’s Affordable Housing Committee bestowed 18 companies with a Champion award. Together, the group of honourees represented 1,094 affordable homes in 20 developments across 12 city wards, which will be ready for occupancy between 2018 and 2020. 

Options’ CEO Heather Tremain, who was honoured alongside Paul Connelly, longtime president of the Options Board, said, “I am grateful to work with the amazing team at Options, all of whom are dedicated to making a more vibrant and equitable city. We are honoured to be recognized for the work we do at Options.”

Heather’s commitment to her team was evident when she invited the 10 staff members in the committee chambers to join her and Paul in accepting the award.

Affordable Housing Committee chair and Deputy Mayor Ana Bailão thanked the non-profit and private sector partners in attendance for their dedication to building quality, affordable housing in Toronto, and called on councillors to support their efforts. "It is only through these strong and ongoing partnerships that the City can succeed in providing new affordable rental and ownership housing for Torontonians,” she said.  

As Mayor John Tory congratulated all the honourees, he added that he viewed this as a muted celebration because its celebrating getting back on track and that even the targets set by the city are woefully short of the demand for affordable housing in this city.

“There is still much to do,” said Tory. “I’m very impatient about this. This is the single biggest component in closing the gap between those who are comfortable and those who are struggling.”

The challenge, he said, it to take all the efforts made by this group and scale them up. 

The 18 organizations recognized at the Affordable Housing Committee meeting were: 

• Artscape 
• CollecDev 
• Daniels Corporation 
• Egale Canada Human Rights Trust 
• Habitat for Humanity GTA
• Hines Interests Limited Partnership 
• Humewood House 
• Madison View Homes Inc. 
• Malibu Investments 
• Native Men's Residence 
• Options for Homes 
• Rockport Group 
• St. Clare's Multifaith Housing Society 
• Toronto Community Housing Corporation 
• Tridel 
• Trillium Housing 
• Westbank Corporation 
• WoodGreen Community Services Corporation 

Thursday, 18 January 2018

Mayor John Tory welcomes residents to Danforth Village Estates

One of the most gratifying aspects of developing housing is seeing purchasers move into their new homes. In December, everyone at Options for Homes was thrilled to welcome some of the first residents of Danforth Village Estates to their new home with the help of a very special guest – Mayor John Tory.

The Mayor hauled boxes for Mila Corpuz and Mel Peña, who were accompanied by their twin toddlers, ushering the family into their new two-bedroom, plus den before taking a moment to celebrate Options for Homes’ efforts in providing housing opportunities for Torontonians.

“One of the biggest challenges the city faces is making sure that people of all income levels can afford to live in the city, whether in rental accommodation or having the opportunity for homeownership,” said Mayor Tory who was accompanied by deputy mayors Ana Bailão and Glenn de Baeremaeker. “[Homeownership] is something that's important to people and sometimes it just takes a little bit of innovation, a little bit of ingenuity, and people with wonderful ideas like Options for Homes and the cooperation of a lot of partners to make it happen.”

With Danforth Village Estates, Options for Homes was able to deliver 250 new affordable homes and helped those with incomes as low as $28,000 purchase a home through the Options Down Payment Loan. In fact, over 75% of purchasers at Danforth Village Estates have household incomes at or below $70,000.

It’s how the Corpuz-Peña family achieved their homeownership dreams. When Mila and Mel first came to Canada from the Philippines, Mila was the sole income earner while Mel, who has a disability, looked for work. The couple were able to purchase a bachelor unit on Mila’s income, with the help of the city’s Home Ownership Assistance Program (HOAP) and an Options Down Payment Loan. But soon, the couple were expecting twins and Mel found work, so they were hopeful they could purchase a larger unit. As Mila said, “We prayed to God for a two-bedroom. He gave us a two-bedroom, plus den!”

While much of the city’s attention is paid to ensuring there’s an adequate supply of rental housing in Toronto, Mayor Tory acknowledged that partnerships like the one between Options for Homes and Deltera, and support from government (the City of Toronto deferred development costs on 150 units at Danforth Village Estates allowing Options to offer more down payment support), are vital to a healthy housing ecosystem.

“The housing issue is not going to solve itself. It's going to be solved through partnerships like this,” Tory said. “That’s why we’re able to be here today, demonstrating again how [with partnerships] we can achieve real, meaningful progress. So I want to thank the Options for Homes people for being good partners with the City of Toronto so that we can not just build the affordable rental accommodation we end up talking about more, but also making affordable homeownership something that is an option for people here in Toronto.”

See CP24's coverage of the day here:
Check out what CTV had to say about it here:

Tuesday, 19 September 2017

Our prediction for the next up-and-coming neighbourhood

This blog post was originally published on the Credit Canada Blog.  For more than 50 years, Credit Canada has helped millions of Canadians overcome debt problems and improve their personal money management skills.  Options is delighted to have been a guest blogger.  View the original blog here.

So you want to buy a home in a big metropolis city like Toronto, but housing prices are through the roof. What options do you have? You could buy a place with a friend or family member. You could wait it out. You could buy a home outside of the city, far away from your work and social circles. Or, you could buy a less expensive home, within the city, in an up-and-coming neighbourhood.

Upandcoming_Neighbourhoods_1.pngHeintzman Place, Toronto's Junction neighbourhood

What is an “Up-and-Coming” Neighbourhood?

Up-and-coming neighbourhoods are urban areas that are undergoing revitalization. They’re still affordable, diverse, and possibly on the brink of becoming hot-spots. All they require is a bit of time and the right combination of investments before they completely transform and their appeal becomes widely appreciated.

Predict the Neighbourhood

Buying in an up-and-coming neighbourhood does require a bit of research. It’s important to be clear about your needs and risk tolerance since nothing is guaranteed. Do you like at least some aspects of the current character of the neighbourhood? Is the neighbourhood convenient for your lifestyle? Do you value living in a mixed income community? You’ll need to predict how the neighbourhood will change and if those changes will come soon enough to match your expectation. To help with the challenge of predicting the future of a neighbourhood, here’s a tip: choose a developer with a strong record of success, building in up-and-coming areas ahead of the curve.

Options for Homes, now a Credit Canada partner, has over 23 years of experience building thriving communities.

Options for Homes is a non-profit developer of condominiums, helping people achieve their dream of becoming homeowners by passing along cost-savings and offering down payment support through the Options Down Payment Loan and Pay It Forward model.
The Junction and the Distillery Districts in Toronto were both up-and-coming areas, and are now among the most sought-after locales in Toronto. What’s the other thing they have in common? They’re neighbourhoods that Options for Homes selected for developments early enough to pass along great savings to their purchasers.

Options for Homes empowers people to become homeowners, and contributes to neighbourhoods becoming more diverse, inclusive, and dynamic.

Track Record

The Distillery District

One of Options' first developments was in Toronto's historic Distillery District. The three-phased project resulted in the Mill Street, St. Lawrence, and Parliament Square Condominiums. It was completed in 2001 – just two years before the neighbourhood was transformed to an arts, food, and entertainment hot-spot. Before Options purchased the land for the development, the area was industrial and mostly forgotten. In the last decade, homeowners in these condos have had their homes appreciate more than 12 times the purchase price. Even with this equity growth, many homeowners don’t plan on selling, preferring to remain in one of Toronto’s most dynamic cultural centers.

The Junction

Heintzman Place is another Options development that has contributed to a revitalized streetscape now lined with design stores, indie coffee shops, must-try restaurants, and craft breweries in the Junction neighbourhood. This former railway centre is now attracting droves of prospective home buyers and our purchasers were there first. As the largest of Options’ 12 developments to date, this condominium community formerly known as the Village by High Park consists of two towers containing 643 beautiful suites, and boasts a rooftop terrace with spectacular views as well as solar hot water heating and an in-house car sharing service.

Upandcoming_Neighbourhoods_Graphic_2.pngWeston Farmer's Market

What does Options for Homes predict will be the next hot neighbourhood?

Weston Village

Don’t write this neighbourhood off because it isn’t in the downtown core – travel time from the Weston GO station to Union is just 17 minutes, and Options’ newest development, The Humber, will be located only a two-minute walk away. Situated on the banks of The Humber River, this condo will provide spectacular views of the city from almost any suite on the upper floors and easy access to nearby parks and trails along the riverfront.  
From the nearest intersection at Weston Road and Lawrence Avenue West, you’re less than two minutes from the 401 for easy access across the top of the city east or westbound. 
When enjoying your neighbourhood you’ll encounter the people, culture and cuisine of a vibrant Spanish, Somali, Italian, Portuguese, Jamaican and Tamil community. If you enjoy cooking you’ll love the fact that Weston boasts one of the best and longest running farmers’ markets in the city. 
Contributing to the demand for this area is Artscape, which will open the Weston hub in 2018 - featuring art exhibits, creative programming spaces, artist live/work lofts and an outdoor area for public gatherings.
With these changes we believe Weston Village has all the right ingredients to become the city’s next “it” neighbourhood and deliver some good appreciation to Options’ purchasers.
This condominium community is expected to begin sales in early 2018.

Upandcoming_Neighbourhoods_Graphic_3.pngThe Humber, Options for Homes

Options for Homes is a non-profit organization that has been providing home ownership opportunities for 23 years. To learn more about how you can get yourself an affordable home in the next “it” neighbourhood, visit

Friday, 25 August 2017

Top 5 ways to spot an up-and-coming neighbourhood

Our friends at Credit Canada invited us to guest blog about up-and-coming neighbourhoods this week. Check out our prediction for the next best place to buy in Toronto’s housing market and get the most bang for your hard-earned buck:

What is an up-and-coming neighbourhood?

Options has a pretty strong track record when it comes to finding neighbourhoods right before they become coveted places to live (think: the Distillery District, the Junction, Lawrence and The Allen, Main and Danforth).
Up-and-coming neighbourhoods are areas that are on the brink of becoming hot spots but are still in transition.
Buying in one of these areas means:
1.       Great prices. Without high demand, the market responds with lower prices. (Remember that supply and demand curve in economics class?) Options purchasers have saved up to $10,000 on the prices of their homes thanks to the lower land costs these neighbourhoods offer.

2.       Higher resale values. Building equity for your family’s future can be more pronounced by buying in an up-and-coming area. When others start to notice how great your new neighbourhood is, prices start to climb with the increased demand (there’s that supply and demand curve again).

Our top 5 secrets to spotting an up-and-coming neighbourhood:

1.               Family-run businesses

Do you see a bunch of mom and pop shops? This is an area that has yet to become attractive to high-paying brands. Eclectic retail is a sign that land is still affordable.

2.                  Train tracks

Options developments in the Distillery District, the Junction, Lawrence and The Allen, Main and Danforth, and Weston all have something in common beyond their new-found it-factor (and the fact that we built there before they were cool): train tracks. Land by the tracks is traditionally seen as less desirable,  and is often the last to be developed. Finding tracks might lead you to an up-and-coming area – and lower taxes.

3.                  Proximity to transit but further from downtown

When we built the first three condos in the Distillery District in the ’90s, a 15-minute walk to downtown was “far.” Find an accessible neighbourhood that is perceived as just outside of comfortable reach and still has frequent transit andas the city grows, so too will your equity.

4.                  Little-known neighbourhoods

When you mention the neighbourhood, do your friends respond with blank stares or “I can’t picture that intersection”? This could be a sign that you’re onto something. Neighbourhoods that aren’t in-demand now could be next on Toronto’s hot neighbourhood list.

5.                  Artists

Ever chasing inexpensive studio space and inspiration, artists are your people to watch to find up-and-coming neighbourhoods. Not to mention, your new home will be in the middle of a richly-woven cultural fabric.

Whether you’re a first-time buyer or just looking for a great new place to call home at a reasonable price point, an up-and-coming neighbourhood is a great option – and now you know how to spot one. We’re always here to help with your search.

Monday, 1 May 2017


How to Prepare to Purchase Your First Home

Buying your first home will most likely be the biggest purchase you’ll ever make. Many people take a long time to make the leap because they're uncertain about their finances, credit ratings, the general affordability or how the whole process works.
Since Options for Homes has been developing condo communities and helping first time home buyers realize the dream of home ownership for 23 years we thought we’d share some of our knowledge and experience, to help you move forward sooner towards your home ownership goals.

We can’t stress enough how important it is to get clear on how much money you have coming in, and how much you have going out. Knowing where you stand with your finances is a crucial first step but it’s not one to be afraid of or to avoid. Information is power and having a clear picture of your current finances up front will give you the information you need to make a solid plan to purchase your first home.
Write down the honest details of your financial situation, including; 

1.       Your annual household income from all sources
2.       Any changes you may foresee to your income
3.       Contingency fund, i.e. If your household is made up of only one income and if something were to change, do you have savings to cover your mortgage payment for 3 – 6 months?
Establishing how stable your income is will help you assess your ability to afford mortgage payments. It is useful to have an idea of what your total debt service ratio (TDS) might be. This is usually a percentage that represents the amount of your annual income required to pay your debts, including your mortgage. Your total debt service ratio should be less than 40%. It is not set in stone and calculated slightly differently by different lenders so be sure to consult with a mortgage lender to determine how that lender will calculate your TDS.

Record all debt owing to credit accounts, leases, or other payments and total up how much you pay monthly to service this debt.
Can you pay off this debt? If not, what can you do now to start paying off your debts? (While not incurring further debt!)
It is definitely not advisable to take on any further debt if you plan to purchase a home. This includes not applying for any credit cards, taking on a new car loan or lease, or buying any big ticket items with credit.

What is Your Credit Score?
Do you know your Credit Score? A credit score is a number between 300 and 850 with 850 being the highest (best) credit rating possible. It is dependent on a number of factors and lenders will look at your credit score as part of your mortgage application process. You can learn more about credit scores here.
Most people don’t realize they should be keeping an eye on their credit score by checking it once or twice a year (but no more frequently than that as it dips slightly every time you pull it). You can get your current credit score in minutes, online for free at Borrowell, or, for a small fee at Equifax,
A credit score of a minimum of 680 is usually required to get a mortgage pre-approval. Consult with a mortgage lender for more information about credit scores.

Good News!
One advantage to purchasing a new construction condo is that due to construction timelines, you may have time to improve your credit rating before you need to come up with the funds to close on your purchase.
If you have a low credit score or damaged credit, there are ways to rehabilitate your credit. Get in touch with our partner, Credit Canada for more information.
Down Payment Funds
Your down payment amount is a crucial factor in purchasing a home. You will be required to pay a minimum of 5% of the purchase price of your home towards the down payment. In order to avoid paying CMHC (Canada Mortgage and Housing Corporation) insurance premiums, which can cost you thousands of dollars, you will need to make at least a 20% down payment.
The great news is that at Options for Homes, we offer a down payment loan of up to 15% to help you avoid these premiums and also lower your mortgage payments.
Take some time to consider how you may be able to save more money to put towards your down payment as this will go a long way in helping you with affordability!

Funds for Closing Costs
We recommend you budget for between 2% and 5% of the purchase price for closing costs on a new construction condo. It is usually less, but it’s best to have a cushion.
Closing costs may include provincial and municipal land transfer tax, HST, lawyer fees, title insurance, property taxes, maintenance fees, home insurance and any adjustments.
First time buyers in Ontario may be eligible for up to $7,725 in provincial and municipal land transfer tax rebates. They may also be eligible for a federal tax and HST rebate.
There is also a first time home buyer program designed to help with affordability called the Home Buyers Program which allows you to use up to $25,000 of RRSP savings, per person, towards the purchase of a new home.

The next step should be to get a mortgage pre-approval. This will save you valuable time by clarifying exactly how much you can afford to pay for a home. It is advisable to shop around for a mortgage. You may want to consult directly with a traditional bank for your financing needs or, with a mortgage broker, and preferably both.
There are many different types of mortgage “products” out there and it takes careful consideration on the part of your mortgage advisor to help you fin d the best product for you and your family’s unique situation.
The main components of a mortgage to consider are: Interest rate, type (fixed or variable) and term of the mortgage. However, also very important are the “3 Ps”: Prepayment, Penalties, and Portability.
These last three things can be as important as, or even more important than the interest rate.  For example, if you think you may inherit a large sum of money in the next year or two and want to put it toward your mortgage, you may want to ensure that prepayment is an option that is available to you in your mortgage terms. Or, if you think you may want to or need to move and sell your home before the mortgage term is up, what will the penalty be? Or, will you be allowed to port (carry over) your mortgage to another home purchase before the mortgage term is up without penalty?
These are questions that should arise in conversation with your lending agent or mortgage broker.  A traditional banking will discuss and offer mortgage products specific to that bank, while a mortgage broker will typically be able to offer mortgage products from many different lending institutions. The mortgage broker’s fee is typically paid for by the lender, not you, the borrower.
Once you receive a pre-approval for a mortgage or a commitment letter from your lender, you can then begin to search for and choose your new home. It’s important to be clear on the expiry date for your pre-approval. Typically a mortgage pre-approval is valid for a set amount of time (for example: 4 months).
It’s also important to note that a “Pre-approval” is not the same as an Approval! You are pre-approved as a borrower up to a certain amount of money however, the home you will purchase has not been selected at this point. The full application process takes place once you have selected a home to purchase.

Note: For Options for Home purchasers, our partners at the Bank of Montreal offer a capped mortgage rate guaranteed for 36 months. TD offers a 24-month guaranteed mortgage rate, and Meridian offers the same for 18 months.

With a clear understanding of your personal finances and a pre-approval in place you are now in a position to start shopping for your new home. Now that you have a good idea of what you can afford, you won’t waste valuable time looking at homes that are out of your budget. Or perhaps you’ve discovered you can afford more than you had previously thought! Be careful not to overextend yourself though. The goal is not to be “house-poor,” but “well-housed”.
When considering how to select your new home, you may consider some of the following:
Location, proximity to work and leisure activities, access to highways or public transit, current and planned future neighbourhood amenities, schools, amount and cost of home maintenance, and the projected resale value in the future to ensure you are growing equity in your home.
If you’re buying a condominium apartment consider if you will need parking or a locker. Are you willing to pay higher maintenance fees to have amenities like a pool and gym? Or do you want to keep costs down and avoid buildings with extra amenities because you probably won’t use them anyway? Of course we’re biased at Options since this is what we build and how we are able to offer the price and the lowest maintenance fees for new condos in the city.
When you’re in the market for a new home you may wish to engage a Realtor to help you select homes to view, negotiate and write offers on your behalf, advise you on the conditional period and connect you with other resources.
When buying with Options for Homes, we have Purchase Consultants and a Client Support Team to guide you through the entire process of selecting a unit, writing and signing the agreement of purchase and sale, and reviewing and preparing closing documents. Since there is no negotiation on the price of our new construction condominium units, most purchasers find they don’t require the services of a real estate agent.

Once you have selected a home to purchase you will sign a Purchase Agreement outlining all the terms of the purchase as well as any other required documentation.

Deposit Funds
When you sign a Purchase Agreement your deposit payment is due right away. This amount goes towards your down payment on closing and is considered your show of “good faith” to follow through on the purchase by paying the balance of the purchase price on the closing date. Initial deposits are generally 5% of the purchase price. With Options 5% is all you ever need to put down to purchase. Other developers may require another 5-15% deposit before closing to complete a purchase.

Cooling Off Period
For a new construction home or condominium there is a 10-day cooling off period during which time you may change your mind and back out of the deal, and your deposit will be returned to you.
When purchasing a resale property, you may be able to negotiate on the price or, you may be in competition with other buyers. In either case, there is no cooling off period when purchasing a resale property. A firm, accepted offer to purchase a resale property is legal and binding.

Closing Day
The big day is finally here! On your closing day your pre-arranged mortgage funds will be transferred to the vendor to pay the balance of the amount owing on the purchase of your new home and you will receive the title / deed to your home. With keys in hand, you’re ready to move in!
There are many things to consider when preparing to buy your first home. We know it can seem daunting but it is also very exciting. We hope this guide helps to give you the information you need to begin moving toward your home ownership goals and to realize “it IS possible.”  At Options for Homes, we are here to help you every step of the way and you can find out more by attending our free Condos 101 events held twice monthly around the city.

Tuesday, 24 January 2017


Did you  know?

Canada has a housing crisis, and affordable ownership housing offers several solutions. Here are just a few...

1. Relieves Rental Shortage - Every affordable home ownership unit purchased by a middle-income renter frees up a unit of affordable rental housing. 

2. Captures land appreciation - Affordable home ownership is the only form of affordable housing that can capture land value appreciation, using it to fund more affordable housing. 

3. Creates its own fund - When affordable home ownership developments use shared appreciation mortgages (SAMs) and revolving funds, the home ownership model does not rely on on-going government financial support or free government land.

4. Lowest default rates - Affordable home ownership programs have a low default rate of less than 1%. In the private ownership market the default rate is higher, at 2% – 3 %.