Being stuck on the renting treadmill is a frustrating experience, we understand that. Maybe you want to buy a home but you don’t qualify for a mortgage or you just don’t have the down payment amount. What’s even more frustrating? The longer it takes you to save a downpayment the more expensive houses seem to become. With Key’s co-equity model, homeownership is made accessible to more people–years sooner!

A Quick Refresher, What is Key’s Co-ownership model?

Key’s co-ownership model provides the benefits of owning with the freedoms of renting, like providing homeownership for a lower entry point than the traditional route. With Key, the minimum initial down payment required starts at 2.5% of the value of your suite, depending on the suite and building, this is typically $10k – 15k.

With this model the more you own, the less your monthly payment will be. From the beginning, you’re building equity. Every month, a portion of your monthly payment goes towards your home equity, this will be different depending on each building . And always, you can contribute more towards your equity at any time. Try our calculator to see how the math works out. 

Plus, for every $1 invested, Owner-Residents get another $1 in leverage so you can build more home equity, faster. We call this Key’s Co-financing Benefit. Unlike a mortgage, Owner-Residents enjoy the benefit of leverage without taking on the debt. The only cost for this benefit is a small interest charge.

The other benefit to Key’s model? No required mortgage. An Owner-Resident can decide to take on a mortgage and buy their suite after the end of the third year, but there is no obligation. The model affords the benefits of both buying and renting, therefore being the perfect model by getting the best of both worlds. Here are three ways Key’s co-equity model compares to renting: 

Stability, A Home To Really Call Your Own:

Key’s co-ownership model allows you to co-own the space you’re living in. Rather than signing a rental agreement and fearing raising rent prices, or the dreaded 60-day notice that you need to move out, as a co-owner you have more security. Plus with a Key suite, you can think like an owner because you are one.  

Building Home Equity That Suits You:

Building home equity with Key is the most essential part of our model as it allows you to be a co-owner. In traditional rental models, tenants pay a monthly lump sum to the landlord and then would continue until the contract period ends.

There is no room for equity building, instead tenants are paying off someone else’s mortgage, without getting anything in return. With Key, as an Owner-Resident, you can track your home equity as it moves with the market.

You can lower your monthly payment 

With renting, your rent will only ever increase, not decrease. With Key, you’re able to lower your monthly payments by contributing more to your home equity.

Our hybrid model allows consumers to benefit from both worlds of buying and renting! If you have more questions about Key and our co-ownership model, learn how it works and visit our FAQ page for answers to common questions.