Understanding the Challenges of Home Ownership

1. Understanding the Challenges of Home Ownership Patrick McAllister Habitat for Humanity Asia Pacific Center for Innovation in Shelter and Finance

2. Dedicated to Eliminating Poverty Housing Building homes in nearly 90 countries and territories around the world Over 350,000 houses built since 1976 HFHI has helped over 1.75 million people in 3,000 communities gain safe, decent, affordable shelter

3. How does it work?

4. Lack of formal jobs • Lack of land title • Money lenders may charge 200-300% interest per year Only 5% of developing country households have access to formal housing finance

5. HFHI Asia/Pacific

7. History of Financial Education at HFHI 1999 - Habitat publishes the first Homeowners Handbook • - Latin America launches program with support from the Citi Foundation • 15,000 families trained • 300 staff trained 2008 - programs began in Europe/ Central Asia • 3,000 families trained • 200 staff trained

8. Habitat Guatemala“Now we know how to make a budget and start changing our future for our own benefit” • 6000 families trained • 5-8 hours training • Tools adapted for illiterate populations • Pre and post training questionnaires • 83% more likely to be current on home loan • 54% more likely to save in a bank

9. Habitat Home Improvement Module

10. No published research on financial education in Asia relating to low income housing Low levels of financial literacy well established More information does not lead to improved behaviour Those who need it most don’t think they do Individual counseling may be most effective for mortgages Habitat Asia – Pacific IFMR Research Review

11. HFHI Considerations for Financial Education in Asia-Pacific • Target very low income • Ensure discrete objectives • Provide financial incentives • Incorporate peer effects • Age group differentiation

12. MANY THANKS