Conestoga news

November 29, 2024 3:26 PM

Conestoga researcher shares credit unions’ innovative mortgage options at global conference

Dr. Anthony Piscitelli, director of the Conestoga Social Innovation Lab, shared innovative approaches to making home ownership more accessible at the World Council of Credit Unions virtual conference on November 14.

Dr. Anthony Piscitelli
Dr. Anthony Piscitelli, director of the Conestoga Social Innovation Lab, recently presented at the World Council of Credit Unions virtual conference.

The conference explored rising home prices across Canada and the challenges facing renters and homeowners. Piscitelli discussed Conestoga’s recent study on Canadian credit unions, highlighting innovative strategies and partnerships that can help more people afford a home. 

“This is not something that the credit union system can hope to solve on its own, but what it can hope to do is have an impact and hopefully make the lives a little bit easier and a little bit better for members,” said Piscitelli, who also serves as board chair at YNCU.

Credit unions offering new mortgage options ideally can influence governments to help tackle the systemic issues that have emerged in the housing system, requiring government leadership and intervention to ensure more people are able to afford housing.

The Conestoga study interviewed Canadian credit union leaders and discussed 11 relevant trends for international audiences. These novel approaches include: shared equity where investors purchase shares in the future value of a home; rent-to-own options that are member-centric and may involve multiple credit unions; impact investments that focus on achieving a return while addressing an environmental or social cause; thematic savings products in which GIC proceeds are invested in housing projects or interest is donated; co-ownership mortgages for people who are not related; mortgages for non-traditional homes such as tiny homes; halal mortgages designed to comply with Islamic tenets against paying interest; new co-operative housing arrangements such as a union co-op; pooled accounts where housing co-operatives and non-profits pool their deposits; grants and donations; and CMHC indigenous housing programs providing mortgages on leased land.

This research was supported in part by funding from the Social Sciences and Humanities Research Council, the Canadian Credit Union Association and Mitacs.

Piscitelli concluded by talking about the home-ownership opportunities that credit unions can pioneer and, when successful, will inspire change in the system and a new way of doing things that other financial institutions will adopt. Credit unions, for example, were the first institutions to lend women money in their own name. 

“Credit unions are in a position to really understand the needs of their members and we are in a position, more so than banks, to really try to meet those needs as their primary driver. I would suggest credit unions can pioneer innovations and introduce new things that really meet the needs of members and we can drive societal change.”

The Conestoga Social Innovation Lab fosters social innovation research that meets the needs of people locally, regionally and internationally. The community-based approach to research is undertaken on behalf of and in support of communities, organizations and change-makers. These partnerships focus on placemaking and developing structures that lead to actions with a societal impact.