There is an ongoing struggle for first-time home buyers in Canada. While buying your first home should be an exciting experience, with the market we are currently in, it’s proving not to be the dream that many Canadians thought it would be. 

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There has been a rise in new models that have tried to solve the homeownership accessibility problem in real estate. 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.  Here are some of the reasons why first-time home buyers are choosing co-ownership.

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1. No mortgage required

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One of the biggest barriers to owning a home the traditional way is qualifying for a mortgage, something that can be especially difficult if you’re self-employed.

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With Key, you will never be required to qualify for a mortgage. As an Owner-Resident, you can choose to take on a mortgage at the end of your initial term, but there is no obligation. 

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For the majority of individuals, their greatest financial obligation is their mortgage debt. And when you’re tied into a long-term mortgage accessing your home equity when needed can be an onerous process. By removing the need to take on a mortgage, co-ownership allows you financial flexibility and freedom. 

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2. A lower entry point

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Saving up for a home can feel impossible, especially with the 20% down payment typically required for traditional homeownership.

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With co-ownership, we are significantly lowering the barrier to entryt. Becoming an Owner-Resident with Key requires an initial investment starting at only 2.5% of your suite value, depending on the building (this is around 15k for many of our suites!). 

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As an Owner-Resident, the equity is shared between you and one of our property owners, and  you are the exclusive resident of the suite.

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3. Flexibility

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With co-ownership, not only are you able to contribute more money into your home equity whenever you please, but once you are ready to move out of your suite after the first year you simply give Key 75 days' notice and, based on the value of your suite, you will receive your home equity and any appreciation if the value of your suite has increased during the time you’ve been living there. Key’s model also saves many of the costs and hassles of buying and selling traditional real estate. earn more about how closing costs work with co-ownership. 

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4. Community

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At Key, we are committed to creating a welcoming community, and connecting our Owner-Residents with one another through events and other online formats. As an Owner-Resident with Key, you have the opportunity to take part in a close-knit community while enjoying the benefits of city living in your downtown neighbourhood. 

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At Key, we’re on a mission to create a world where real estate is a source of prosperity and freedom for everyone. If you’re a first-time homebuyer interested in co-ownership as a solution for you, learn more about when co-owning makes sense and how renters can benefit from Key.

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