TORONTO, Canada—DUCA Financial Services Credit Union has launched the Community Hero Mortgage, a new mortgage product to help provide affordable housing for working, low-income families in the greater Toronto area (GTA).
In partnership with Habitat for Humanity Greater Toronto Area, the Community Hero Mortgage contributes a percentage of the interest portion of every Community Hero Mortgage payment to assist in building houses for local families in need of affordable housing.
"We are pleased to introduce the Community Hero Mortgage to new and existing members," said John Jenner, DUCA vice-president of marketing, in a statement. "DUCA has a long history of giving back to the community, and at a time where housing in the GTA is becoming increasingly unaffordable, we wanted to find a way to support families who wouldn't otherwise be able to purchase a home."
Through the Community Hero Mortgage, DUCA will donate two basis points from the interest portion of each monthly mortgage payment to Habitat for Humanity Greater Toronto Area – up to a total commitment of $500,000 over the next five years – to help fund the construction of new homes for families. Habitat for Humanity GTA then offers a zero down payment, no-interest mortgage capped at 30% of a family's income to help low-income families purchase those homes. DUCA employees will also support the initiative by providing volunteer hours to support the Habitat for Humanity home builds, the CU stated.
"The Community Hero Mortgage will make a significant impact on our work of providing a hand up to help working, low-income families become homeowners," said Ene Underwood, CEO, Habitat for Humanity, Greater Toronto Area. "Affordable homeownership empowers Canadians, providing them with a sense of pride, stability and independence. Together with DUCA, we can give GTA home buyers an opportunity to 'pay it forward' and help other low-income families in the GTA also realize the benefits of homeownership."
Through its social responsibility platform, DUCA invests in opportunities for youth, newcomers and families. Each year, DUCA commits a minimum of 3.5% of its pre-tax profit to donations and community sponsorships, positioning them ahead of the Imagine Canada Caring Company standard of 1%, the CU said.
The Community Hero Mortgage offers a competitive five-year fixed rate, currently set at 2.44%. In addition, those who purchase the mortgage will receive a Credit Union Home Warranty Program free for six months, the CU explained.