WHO WE ARE

OUR MISSION is to provide the opportunity for people of moderate means to become homeowners, build equity, and improve the quality of life for themselves and their children.

OUR VALUES are empowerment and community.

WHAT WE’VE ACCOMPLISHED

OUR PARTNERS

OUR MODEL | OUR PARTNER

DEVELOPER

SEED EQUITY

HOLD 2ND MORTGAGE – RECEIVE

FUNDS ON PAYOUT

FUNDER

Market Price

Down payment support secured

by 2nd Mortgage

Cost to

Deliver

DESCRIPTION OF PROGRAM

OFH/HOA loans the purchaser 10 - 15% of the purchase price

of the unit and registers it on title as a 2nd mortgage.

No payments on this loan are due until the unit is resold or no

longer occupied by the purchaser

DOWN PAYMENT SUPPORT

OFH/HOA provides down payment assistance in the form of 2nd mortgages. No scheduled payments of principal or interest are required until the home is resold or rented out, or if the homeowner voluntarily decides to repay the 2nd Mortgage.

The purchase price is less than market and the difference is roughly equal to the available 2nd mortgage amount

OFH/HOA 2nd mortgages are typically 10 to 15 per cent of the purchase price

No actual money is transferred to the purchaser

THE DOWN PAYMENT LOAN IN ACTION

Total Down Payment Support: $70,000

MARKET PURCHASE

5% Down Payment$15,000

Mortgage required$285,000

DOWN PAYMENT LOAN

5% Down Payment$15,000

Options loan$45,000

Mortgage required:$240,000

OPTIONS + GOV’T LOAN

5% Down Payment$15,000

Options loan$45,000

Additional help$25,000

Mortgage required:$215,000

Required HHI:$50,000 - $58,000*

Required HHI:$65,000 - $75,000*

Required HHI:$55,000 - $65,000*

*Dependent on bank lending requirements

SOURCE OF FUNDS

OFH has created a growing, self-sustaining and permanent revolving fund held by HOA

The OFH/HOA 2nd Mortgage captures the value initially created through development and a proportionate share of the increase in value over time.

This pool of assets represents “social equity” that is preserved and grows as a revolving fund which is essential to providing affordable housing in the future.

OFH looks to governments and the private sector for additional investment to create greater deeper and longer-term affordability

DISCHARGE, INTEREST AND REPAYMENT (UPSIDE)

The unit can be sold at any time to anyone on the open market

The 2nd mortgage can be repaid at any time – even at closing.

The OFH/HOA 2nd mortgage is repayable upon resale, when the unit is no longer occupied by the purchaser, or when the homeowner chooses to voluntarily repay it.

If the Shared Appreciation mortgage was 10% of the original purchase price, then 10% of the resale value of the home is paid back to the fund when the home is sold.

10% of $500,00 = $50,000 2nd mortgage (from the fund)10% of $700,00 (resale value) = $70,000 (back to the fund)

DISCHARGE, INTEREST AND REPAYMENT (DOWNSIDE)

If the home decreases in value, then only the mortgage principal is repayable & interest is not charged.

ELIGIBILITY / TARGET MARKET

First time homebuyers

OFH/HOA mortgages are only available to purchasers who have bought units in Options for Homes developments.

To be considered for an HOA 2nd Mortgage the following criteria applies:• purchasers must be at least 18 years old,• be legal permanent residents of Canada• the new home must be the principal residence of the

purchaser (mortgages are not provided for investor-purchasers).

• purchasers must not already own or have an ownership interest in another home.

UNDERWRITING

OFH/HOA relies on FRFI or Credit Unions. Purchasers must be able to pass the stress test – 4.9% & qualify for a 1st mortgage

70% obtain 1st from an FRFI30% from Credit Unions

OFH develops partnerships with financial institutions who work with purchasers to provide 1st mortgages

TAKEOUT

There is no mandatory takeout

Most purchasers pay out their 2nd mortgage in 5-7 years

REFINANCING

If the primary mortgage amount is refinanced so that it is larger than the original primary mortgage amount, the HOA 2nd Mortgage must be paid off

HOMEOWNERSHIP / FINANCIAL LITERACY SUPPORT

Purchasers are provided with pre-purchase financial information and support

OPERATIONAL FUNDING

The money for OFH’s fee comes from pre-construction and construction financing

ADMINISTRATION

HOA partners with licensed mortgage brokerage, MSI (Mortgage Services Inc. HOA is a FSCO-licensed Mortgage Administrator HOA is responsible for administering all of MSI’s mortgage affairs

THE HUMBER: CURRENT DEVELOPMENT

• 232 units, 22-storey tower

• On the banks of the Humber River

• Rooftop terrace, party room, outdoor park

• Includes fridge, stove, dishwasher, washer and dryer

• Parking and locker (50K and 5K) available to purchases of 2 and 3

bedroom units

• Construction start: July 2020

• Tentative Occupancy: Early 2023

• Avg $750 per square foot

• Customizable finishes and upgrades count towards down payment!

• Low maintenance fees @.49

• 5 minute walk to the Weston GO station

PRE-DEVELOPMENT: HIGHLANDS

• Highlands Co-operative

• Site purchased from CreateTO

• 6.07 acre site Dunelm St and Markham Rd,

Scarborough

• Approx. 598 units including 3 bedroom townhouses with

and two midrise buildings of 19 and 16 storeys

• Partnering with Habitat for Humanity who will deliver

25 townhouses

• Focus on family-oriented housing

• Land closed December 2018

• Overall Project Value – $240,000,000

• 2nd mortgages – $24,000,000

PRE-DEVELOPMENT: HALL’S POND

• Hall’s Pond Co-operative

• Non-profit vendor

• 35 acre site in Guelph at Clair Rd and Gordon St

• Approx. 750-1000 units

• Currently working with City and other landowners on

Clair-Maltby Secondary Plan

• Overall Project Value – approx. $350,000,000 to

$400,000,000

• 2nd mortgages – target 10 to 15%

PRE-DEVELOPMENT: DONWAYS

• Donway Co-operative

• Vendor – United Church

• Proposal for 6-storey midrise building with integrated

sanctuary space

• Overall Project Value – $134,000,000

• 2nd mortgages – $29,500,000