In Canada, young people have grown up to be met with the harsh reality that homeownership is no longer what it used to be. 

Many Canadians, especially young Canadians and those who don’t have access to the bank of mom and dad, are being left out in the cold. In fact, it now takes the average urban Canadian homebuyer 28 years to save for the recommended 20% down payment. 

For those who can’t get into the market, they end up being stuck renting and unable to prosper from the financial and social benefits that come with owning a home. 

At Key, we believe that there is a way to deliver the key benefits of owning without the need to take on large debt with high mortgage payments. This is why we introduced our co-ownership model which allows aspiring homeowners to co-own alongside property owners.

So how can Key’s co-ownership model benefit me as a renter? Here are three important benefits Key’s co-ownership model provides to renters.

1. An equity stake that can grow with the real estate market

Unlike renting where you pay a monthly lump sum that could be going towards growing your landlord’s equity, for an initial contribution that starts at just 2.5% Key’s model allows you to have an equity position in your home starting from day one, that can grow in value over time. 

Key’s model also gives you the opportunity to amplify your returns through our Co-financing Benefit. For every $1 you invest, you will also receive another $1 in leverage. Unlike a mortgage, you don’t actually have to take on this debt in order to enjoy the benefit of leverage. The only cost to you for this benefit is a small interest charge.

2. Increased security of tenancy

Unlike with renting where there is always that dreaded 60-day notice from your landlord that you have to move out, Key’s model provides you more security of tenancy.

With co-ownership, both co-owners are locked into a three-year term. After the third year, you have the option to take on a mortgage and purchase your suite, but there is no obligation. You can learn more about security of tenancy as a co-owner with Key here.

3. Lowering your monthly payments

Something that’s unique about Key’s model is that you can actually lower your monthly payments. This is a significant benefit over renting, where rent prices will only ever increase.

As a co-owner with Key you have a monthly payment that primarily covers the portion of your suite you don’t yet own, plus important things like maintenance fees and property taxes.

Each month a portion of your monthly payment will go towards growing your home equity. This starts at $50 and is dependent on the building you are living in. But you can contribute more as well. Each time you invest more, you own more of the suite, which reduces your monthly rent equivalent. So the more you own, the less you’ll pay monthly.

At Key, we understand that being stuck on the rental treadmill is a frustrating experience. We’re driven by our mission to turn more renters into owners by giving Canadians a third option in real estate.

If you’re an aspiring homeowner who’s feeling stuck renting, learn more about how Key compares to renting and what to do when you’re stuck on the rental treadmill.