For many of us, buying a home is beyond just a transaction, it’s one of the most important financial decisions you’ll ever make. 

In Canada, with housing prices continuing to reach all-time highs, becoming a homeowner has been getting harder by the day, especially for young Canadians in big cities like Toronto, where it takes an average of 28 years to save for the recommended 20% down payment.

The major reasons for this crisis have been the same since the 1990s–housing supply shortages and the scarcity of developable land.  As this crisis deepens, research finds that house prices rose 20.6% YoY in February 2022. 

In addition, with the highest inflationary pressures in this decade, the Bank of Canada has raised interest rates which leads to higher borrowing costs for mortgages and can reduce purchasing power for many including first-time homebuyers. 

The housing crisis in Canada is a real problem and there is a real need for solutions.   

Condominium ownership is considered one of the most attractive and attainable ways to enter the real estate market particularly for those looking to enjoy downtown living, be a part of a community, and enjoy a high quality of life. 

The beauty of condo ownership is while you own the condo you still share the building, amenities and the costs associated with maintenance with other residents. Here are some of the advantages of condo living: 

  • Condo fees cover all extra maintenance work which means owners don’t have to shovel snow, mow the lawn or do any repair work for the shared building maintenance costs. 
  • Condos can provide an excellent lifestyle with amenities like swimming pools, fitness centres, patios, events rooms, concierge services, and more. 
  • Condos allow you to live in the heart of the city such as downtown Toronto which provides access to the best activities, nightlife, and other attractions. 
  • Condos promote community and increase your network by providing close proximity to neighbours from different walks of life. 

Key’s co-ownership model 

At Key, we provide the opportunity to co-own a home to live in and build home equity with an initial down payment starting at 2.5% of the home’s value and no need to qualify for a mortgage–you can think of it as the benefits of owning with the freedoms of renting. 

As a co-owner each month you have a monthly payment that is comparable to market rent, and includes important things like property taxes, shared building expenses and maintenance fees. Each month $50 of your monthly payment automatically goes towards building equity, but you can invest more at any time, which lowers your monthly payment. 

Co-ownership enables increased mobility, your initial contribution can be sold, after the first year and with only 75 days’ notice. When you are ready to move out–-if the value of your suite has appreciated–so will your home equity investment, so you will get back your equity plus any appreciation.

Key also offers an optional Co-financing benefit, for every $1 invested, Owner-Residents get another $1 in leverage so you can build more home equity, faster. Unlike a mortgage, you enjoy the benefit of leverage without taking on the debt. The only cost for this benefit is a small interest charge. When you move out of your suite you will also get back the appreciation from your co-financing benefit.

Why co-ownership works for condos 

Since Key’s co-ownership is a model for homeownership, condos are the perfect fit. Key allows Owner-Resident’s entry starting at 2.5% of the value of their suite and allows you to build home equity at your own pace.

In addition to the benefits of homeownership that Key provides, we offer beautiful suites in sought-after downtown locations such as King West, Triangle Park and St. Lawrence. 

If you’re interested in Key’s co-ownership model as a solution for you, learn more about how our model works and check out our available suites here