The struggle as a first-time home buyer in Ontario is real. While buying your first home should be an exciting time, in today’s prohibitive real estate market, it’s proving not to be the dream that many Canadians thought it would be.  

We know that it now takes an average of 27 years for the typical first-time Canadian urban home buyer just to save up for the recommended 20% down payment. That’s why we’re seeing so many alternative homeownership models pop up. 

Among these new and innovative solutions, co-ownership is one of the best solutions for first-time homebuyers looking to get their foot in the market. 

Learn more about Key’s current Owner-Residents and why they chose co-ownership

How does co-ownership for residential real estate work? 

Key is a co-ownership model which enables you to start owning with just 2.5% of the value of your suite and no mortgage. You co-own part of your suite and get to live there with more security of tenancy than you would have if you were renting. The remaining equity is owned by the investor or property owner.

Like in traditional homeownership, as the value of the real estate appreciates, so do the values of all of the equity partners’ investment in the property. You can learn more about how Key’s model works here and how it compares to traditional homeownership.

What are the benefits of co-ownership for first-time homebuyers? 

Co-ownership removes the two largest barriers to homeownership; saving a significant amount for a downpayment and the need to qualify for a mortgage. This means that you can start building home equity many years sooner. 

Another benefit? You’re able to contribute more towards your home equity whenever you please, but it’s not required. Plus with Key’s innovative model, the more of the suite that you own, the less you’ll pay on a monthly basis. 

There is also increased flexibility. After your first year, once you are ready to move out of your suite you simply give Key 75 days’ notice and, based on the value of your suite, you will receive your home equity and appreciation back. It really provides the benefits of owning with the freedoms of renting. 

When making an important decision like buying your first home, it’s important to do your research and understand the different solutions that are out there. Co-ownership is just one of the ways that you can get into the market today, but you can also learn more about additional alternative homeownership models