Housing project avails of non-profit EBS loans

EBS Building Society has agreed to provide non-profit mortgages to the housing charity, Habitat for Humanity (HFH).

HFH, a self-build housing organisation that works with families and volunteers to construct decent and affordable homes, is building four new homes in Ballymun over the summer months for local families in need of long-term housing.

Foundations have already been laid for the homes, which are expected to be completedin the third quarter of the year. At this point, the families involved can purchase their homes using a non-profit EBS mortgage.

The interest rate on the loans will match the cost to EBS of borrowing the funds on the wholesale money markets, according to EBS's head of mortgages, Dara Deering. These rates are currently around 2.4-2.5 per cent. No deposit is required.

In other countries, HFH raises the money itself and acts as the lender, however EBS said their involvement would free up capital for the organisation and give them the freedom to pursue other projects in Ireland.

"Without finance and without land, we would find it difficult to deliver on our mission in Ireland.

"The mixture of our charitable status and the high cost of construction presents quite a challenge for us," said HFH board member Tony Porter.

Ms Deering said EBS's association with HFH was a long-term arrangement. HFH Ireland, which is also receiving support from Vodafone Ireland Foundation, Bowen Construction, Century Homes, PMI Mortgage Insurance Company and the PA Foundation, is working in partnership with Dublin City Council to help people move off the social housing list and into permanent homes.

The families selected play a part in the building process. As well as completing a home ownership training course, they must also invest hundreds of hours of their own labour into building their house and the houses of others. HFH calls this "sweat equity" and says it helps keep costs to a minimum.

Since the organisation was founded in the US in 1976, it has built almost 200,000 homes worldwide, providing over 900,000 people in 3,000 communities with affordable homes.

Further projects in the Republic are planned.