Trillium Housing will provide eligible home purchasers (those with incomes below the local median income) with a shared-appreciation mortgage. The Trillium Mortgage is only available to purchasers at developments where Trillium Housing has invested.
The Trillium Mortgage provides housing affordability because it is PAYMENT FREE until resale of the home, or if the purchaser ceases to occupy the home. (Trillium Housing does not provide mortgages to investor-purchasers). This type of mortgage product has been accepted by CMHC and banks in their calculation of home owners’ equity.
A shared-appreciation mortgage does not have a conventional interest rate, but instead repayment is made up of the mortgage principal and a share of any appreciation in the value of the home. If the value of a home has increased 15% when the mortgage is repaid, then the homeowner pays the principal plus 15% appreciation.