Getting the Keys to Your Dream Home with Kindred’s HomeShare Mortgage

3 minute read
The HomeShare Mortgage from Kindred Credit Union - Friends moving in

For many Ontarians, owning a home remains a key part of “the Canadian dream” and yet rising real estate prices are a major barrier to entering the housing market. Kindred’s HomeShare Mortgage could be your solution!

What is the HomeShare Mortgage?
Kindred’s HomeShare Mortgage can provide a viable alternative by increasing accessibility for friends or family members who combine their resources to own a home. This is where a home is owned jointly by two or more parties – whether that is your sibling, parents, or best friend! All owners are listed on the title of the property, meaning everyone holds a portion of ownership in the property.

There is no restriction on the type of residential property – it could be a single detached house with shared living spaces like kitchens and living rooms or the property may be divided into separate units.

The HomeShare Mortgage is for members seeking home ownership. For individuals looking for an affordable housing option without home ownership, you may be interested to learn more about Waterloo Region Home Share. Although the name sounds similar to the HomeShare Mortgage, Community Justice Initiative’s Home Share is a living arrangement between two or more people where a Home Provider offers accommodation in exchange for a contribution to the household expenses and possible help around the home.

Who is Kindred’s HomeShare Mortgage for?
Everyone! The HomeShare Mortgage can help to make home ownership a reality in a housing affordability crisis and provides an alternative means of entering the home ownership market.

The mortgage is about helping individuals and groups of people become home communities – young people who are entering the market, seniors who are downsizing and looking for safety and security, or multi-generational families.

Why should I consider the HomeShare Mortgage?
There are several reasons why the HomeShare Mortgage might benefit you! Here are some to think about:

  • Cost – a single person even with a good-paying job might struggle to afford the down payment or monthly mortgage payments associated with ownership. Pooling resources to buy a house with others effectively lowers the cost for everyone!
  • Increased odds of mortgage approval – a combined income of 2 to 4 people can make it easier to get mortgage approval and may also make it more affordable for a higher home price
  • Location, location, location – we all know the phrase, and it matters! Having a larger budget means that there are more options and more neighbourhoods to purchase a home in, which could mean being closer to better schools, a shorter work commute, or even by your favourite restaurant!
  • Efficient Space – if you have more options for houses, you are also probably looking at larger square footage. That means maximizing available living space through co-ownership.
  • Creating a sense of community – the concept of sharing resources and facilities creates indoor and outdoor common spaces and tight-knit relationships with those you are co-owning with. Ongoing care of a home takes a lot of money and effort and these responsibilities can be shared.

Next Steps for the HomeShare Mortgage
If this sounds like a solution that might work for you, there are some things to consider before signing on the dotted line.

The first is seeking legal advice on the technicalities of a joint mortgage, particularly the ownership structure. Although not required, we recommend a binding agreement for all parties to consider terms in the decision-making process, use of property, financial and insurance arrangements, home operation, and more.

Like living in a dorm or with roommates, come up with house rules and how shared areas will be used. Put it in writing. No one wants to be stuck doing the dirty dishes all the time! Ask every question you can think of: Who is going to mow the lawn? What happens if someone can’t contribute to a monthly payment? Is one person responsible for paying the internet bills and someone else your electricity? What happens if someone receives a job offer and can’t commute and has to leave the mortgage? There are important questions that need to be asked, addressed, and clear terms of what-if steps planned.

Our HomeShare Mortgage is available for all 1 to 5-year terms, and up to four people can get a mortgage together; if you’re a party of five though, you can still be considered. Just like our regular mortgage, you can pay off up to 20% of your remaining outstanding balance each year to reduce your mortgage and interest quicker!

Contact a member of our Personal Lending Team to learn more, or book an appointment today. We’re here to help you into a home of your own and to Make Peace with Your Money.

Kindred Credit Union

At Kindred, we believe you have a better choice for banking. We believe values and faith are central to life, and financial decisions are not values-neutral. In fact, we think financial decisions can impact the world in amazing ways—so our values are integrated into everything we do. We call this Banking with Purpose.

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