First-time homebuyers in Metro Vancouver continue to face the challenge of saving for a down payment in an ongoing environment of out-of-reach housing prices.
While some may be gifted down payments from family members, have access to inheritance, or other means, most struggle with an insufficient down payment and find themselves unable to break into the residential housing market. Until now.
Award-winning Cascadia Green Development in collaboration with Community Savings Credit Union, B.C.’s largest fully unionized credit union, are on a mission to be part of the solution to housing affordability in Vancouver. The pilot program is a first of its kind Rent-To-Own (RTO) development in Canada, located in the City of North Vancouver.
RTO program, INNOVA development
INNOVA is situated on a corner lot directly between Lower Lonsdale and Moodyville, positioned with convenient proximity to the community’s premier amenities. Markets, restaurants, shops, services and cultural attractions, plus multiple parks and green spaces, mountain and forest trails, and the beauty and pleasures of the harbourfront, make for an urban rich experience. INNOVA is also easily accessible to major transit routes, including a new B-Line bus, and is only 12 minutes to downtown Vancouver via the Sea Bus.
The mixed-use development will consist of 168 residential homes and approximately 30,000 square feet of commercial space. The development also includes two childcare centres and a communal area for neighbourhood residents.
Nine of the homes will be part of an Affordable Home Ownership Program (AHOP), while eight of the homes will be part of the RTO program, designed to benefit individuals looking to own, who otherwise may not qualify. The RTO program provides an opportunity for new homebuyers to allocate their rent towards the down payment of their future home.
“Vancouver has recently been ranked as the least affordable city in North America and as a credit union we can do something to effect change and encourage other lenders to do the same,” says Mike Schilling, CEO and president of Community Saving Credit Union.
“It has become difficult for first-time homebuyers to enter the housing market. If banks won’t give you financing, you are locked in a cycle of constantly paying high rents and not able to save for the deposit to get on the housing ladder. Through this project, we want to show what is possible when developers and lenders come together to truly benefit the community.”
The RTO application process
The RTO program will be prioritized for first responders or people who live or work in the City of North Vancouver. The shortlisted candidates’ information will be sent to Community Savings Credit Union (the lender) for approval. When final candidates are approved, they will be required to sign a purchase/rental agreement and pay $5,000 upfront.
At this time, the home’s overall price will be set and will not fluctuate with the property’s market value. Prior to move-in, the applicant is obliged to make another payment of $5,000 in order to receive a key to the property. Individuals will also have an option to exit the RTO program or complete the purchase.
Once the applicant has moved in, they will pay market-rate rent on their assigned home for 24 months. At the end of the term, the full amount of the rent paid, in addition to the two $5,000 initial contributions (total: $10,000), will be credited towards their final down payments.
“At Cascadia, our dream for this project was to focus on fostering a community and bring the dream of homeownership to young families and other community members,” says Farzad Mazarei, CEO of Cascadia Green Development.
“By collaborating with Community Savings, we were able to see this dream become a reality. I hope to encourage other developers to take this initiative and work on similar developments to make housing in B.C. more affordable.”
For project and pre-sale info, visit liveinnova.ca. For RTO registration, visit rto.cascadiagreendev.com.
