Introduction

In an intensifying housing market, a mid-sized engineering company in Ontario is making headlines for its innovative employee benefits program aimed at easing the struggle for homeownership.

C.F. Crozier & Associates Inc.

C.F. Crozier & Associates Inc., located in Collingwood, has gained attention in its fourth year of offering up to $20,000 to its employees for down payments on their first home. The initiative has already benefitted 36 staff members, who are required to stay with the company for a minimum of three years after receiving the assistance.

Initiation of the Program

President Nick Mocan initiated this program after realizing that many employees faced challenges securing affordable housing in the area. "The loyalty and goodwill that we build with our employees goes a long way,” Mocan stated. Employees generally do not seek to leave on the third anniversary of the assistance, showing a significant commitment to the firm.

Inclusivity of the Assistance

Unlike traditional bonuses or benefits that are often tied to job performance, Crozier’s down payment assistance is unique in being inclusive, extending to all employees, even those in entry-level positions like receptionists. To qualify, employees must simply submit a letter to Mocan detailing their need for help, with no lengthy application process required.

Success Stories

Take 28-year-old Nicholas Lefebvre, for instance, who received $15,000 to help purchase a three-bedroom townhome in Midland for $445,000 in the summer of 2022. Prior to receiving the assistance, he and his partner had been consistently outbid on around 20 properties. "Without the funding, it probably would have taken us a lot longer to find a home," he said, noting how it allowed them to act quickly and secure a favorable mortgage rate.

Another success story comes from Magda King, who joined Crozier as a receptionist in 2019. Thanks to the down payment assistance, she and her husband were able to purchase a new home in Collingwood, finally moving out of her in-laws’ house after being outbid on several properties. Now a construction coordinator at Crozier, she credits the company with giving her the stability she needed to start a family.

The Demand for Homeownership

The desire for homeownership remains strong among Canadians, even as the government focuses on increasing rental housing. Crozier employees Haley Birrell and Brendan Krahn, both aiming to buy their own home, have secured $20,000 each from the program. They are now purchasing a pre-construction home in Collingwood, which will advance their plans by three to five years.

Industry Impact

Since launching this program in February 2021, Crozier has inspired interest from other companies eager to implement similar initiatives. Yet to this date, no similar benefits have been reported, highlighting the uniqueness of Crozier’s approach in the industry. Compensation experts, like Peter Landers of Global Governance Advisors, have noted that such generous employee perks are rare.

Program Conditions

The program stipulates that employees must remain with the company for at least three years, which Lefebvre believes is a reasonable expectation. Crozier directly deposits the funds into employees' registered retirement savings plans, where they must remain for 90 days before withdrawal to avoid tax penalties under Canada's first-time homebuyers program.

Further Testimonials

Isabelle Forsyth, a 29-year-old project engineer, along with her partner, was thrilled to learn about the program after already saving $50,000 for a home in Greenwich, N.S. The assistance allowed them to expedite necessary renovations on their $428,500 house, helping them settle in more quickly.

Conclusion

Overall, Crozier & Associates stands out not only for its commitment to employee welfare but also for setting a precedent that could reshape how companies support their workers’ journeys to homeownership. Will more firms follow suit? Only time will tell.