Homebuyers can now contribute to the community and affordable housing just by taking out a mortgage – at no extra cost.
DUCA credit union has launched the “Community Hero Mortgage,” which donates two basis points from each mortgage to Habitat Humanity to help build affordable housing in Toronto.
“What we started looking at what that looks like in a more modern context, our members and our board gave us a mandate to be meaningful and involved in the community and we started looking for issues in Toronto and what was pressing to the community here,” Keith Taylor, AVP, strategic social impact at DUCA Financial Services Credit Union, told MortgageBrokerNews.ca. “Affordable housing and real estate was very closely tied to what the community needs and what we do in this business.”
Homebuyers who qualify for any DUCA mortgage can choose the Community Hero Mortgage option at no additional cost. The credit union, which donates 3.5% of its pre-tax profit to community sponsorships, will dedicate a total of $500,000 to the program.
DUCA has plans to offer the program for the foreseeable future, though it is not currently offered through the broker channel.
According to Taylor, the program is a way for the institution to make a difference in the community.
“We were formed about 60 years ago by newcomers who didn’t have access to bank accounts with the big banks. That was the spirit Duca was formed in. We’ve always had this mandate to be involved with the community and facilitate access where we can,” he said. “The slogan we have is Do More, Be More, Achieve More. That’s kind of the driving mandate.
“The Community Hero Mortgage is meant to be a vehicle to show financial institutions could have an impact on that issue in a bit of a different way than they have been.”