No one expected the sharp increase in inflation back in 2022, or that it would continue to sharply rise that summer. The result was an increase in houses for sale, competitive prices, and a hot buyer’s market, making it difficult to for people to purchase a home of their own.
Despite what seems like a cooler market, homes are still difficult for Ontarians to purchase. And while there are several government programs and incentives to help, like the First Home Savings Account (FHSA), it still might not be enough. However, you can still own a home – with some creative solutions!
Kindred’s HomeShare Mortgage™ is a joint mortgage that can provide more affordability by pooling resources together to buy a home that is owned by two or more parties. Co-ownership is a viable alternative for multi-generational families or a group of friends to live together, or to help family members buy a home.
The parties involved would apply for a joint mortgage, one where you use that co-owned property as collateral to borrow funds – to fund the purchase of the house or the renovation of the house – which is typically done in both parties’ names (or however many people are involved on the property).
They're all involved in the lending part as well. At Kindred, for our HomeShare Mortgage™ program, the property is occupied by the people that own the property. It's for their use – it’s not just a house, it’s a home!
Of course, every situation is unique. You have different people, you have different properties, you have different goals. Having open communication between all parties about your dreams and expectations of home ownership will make the entire process smoother.
Make sure you seek legal advice during every step of the process; although not required, it is important to understand ownership structures of a joint mortgage. Consider a legal ownership agreement that details important points such as exit of ownership. Additionally, strongly consider establishing house rules to determine how decisions will be made for all facets of home ownership, such as property maintenance and bill payments.
The sooner you can involve someone who knows a little more about co-ownership and joint mortgage lending, the better. That way, you don't get too far down one path and then realize, oh, this isn't actually going to work.
Are you ready to start your home buyers’ journey? Our Mortgage Experts will outline all your options to get you into your first home of your own – all while helping you Make Peace with Your Money®! You can ask us anything.