Imagine you’re on your dream home’s doorstep, searching for keys in excitement. Many Canadians wish for this but think it’s too hard to get. In Ottawa, a house costs about $700,000. To afford this, you need a yearly income of over $170,000. Saving for the down payment adds stress. For some, owning a home seems impossible.
But Ourboro changes this story. Since 2018, it has helped people in the Greater Toronto Area become homeowners. It acts as a key partner towards owning a home.
Their solution is simple yet smart. Buyers put down at least five per cent. Then, Ourboro covers the rest to make 20 percent. It’s not just about money. It’s about sharing the journey and rewards of owning a home.
Ourboro is perfect for first-time buyers or those tired of renting. It’s a model where you invest together, skipping monthly payments and interest. Instead, you focus on how your home’s value grows and your shared success. With Ourboro, owning a home is within reach, not a far-off dream.
Key Takeaways
- Ourboro bridges the down payment gap, enabling you to reach the necessary 20 percent.
- Co-investment helps avoid rent cycles and achieve long-term home ownership.
- No monthly payments or interest, with a focus on shared appreciation.
- Streamlined support and guidance in the home buying process.
- Fully operational in the Greater Toronto Area since 2022.
Understanding Ourboro’s Down Payment Assistance
Getting a down payment for a home is tough for many Canadians. Ourboro helps by investing in homes with buyers. This makes owning a home easier for everyone.
What Is Ourboro?
Ourboro is a Canadian company that helps people buy homes. They can put up to $250,000 towards your down payment. This way, you can get a mortgage without needing more loans or payments. They work in places like Greater Toronto, Ottawa, and more.
How Ourboro’s Co-Ownership Model Works
Ourboro’s co-ownership model is special for people who have trouble saving for a down payment. You need to put in 5% of the home’s value yourself at the beginning. What you pay, along with what Ourboro pays, can reach up to 20%.
This helps you avoid expensive monthly payments because Ourboro covers up to 75% of the down payment4. When you sell, you and Ourboro share the home’s change in value equally.
Qualifications for Ourboro’s Program
To join Ourboro’s program, you must meet certain criteria. These criteria help ensure your eligibility and successful homeownership.
Minimum Down Payment Requirements
For the co-ownership model, a 5% down payment is needed. Many lenders and programs in Canada ask for the same. Ourboro, for example, can invest up to $250,000 in your down payment in the GTA.
Income and Mortgage Pre-Approval
Having the right income is key to getting mortgage pre-approval. It’s a must for Ourboro’s program. You’re qualified for the First-Time Home Buyer Incentive if your yearly income is under $120,000. But in cities like Toronto, Vancouver, and Victoria, this limit rises to $150,000.
Getting a mortgage pre-approval shows you can handle owning a home. It matches your down payment helps with your borrowing capabilities, making it easier to step into the housing market.
Benefits of Co-Ownership with Ourboro
Ourboro’s co-ownership program has several benefits. It offers a different way to invest in a home. One big advantage is that you don’t need to make monthly payments or worry about interest. This can take a lot of financial weight off homeowners’ shoulders.
No Monthly Payments or Interest
Ourboro is not a typical lender; it’s a co-owner. So, in the co-ownership program, you avoid monthly payments and interest. This special model is about sharing the property’s ownership. Each owner puts money into the down payment based on a 60-40 split, favouring Ourboro. This helps make sure both sides win financially, without the usual mortgage worries.
Home Maintenance and Renovation Credits
Under Ourboro’s program, homeowners must look after the property. But they can earn renovation credits for upgrades that add value. This motivates homeowners to keep the home nice and improve its value. Ourboro offers advice and support on real estate and what’s trending in the market. As a home inspector, I also do webinars on home improvement projects, many of which you can do yourself (let’s call it sweat equity), and I reveal which projects and approaches give the highest return on investment. Through this, both owners can share in the home’s potential value gain, making it a smart investment and a more enjoyable home to be proud of.
Steps to Get Started with Ourboro
If you are interested in Ourboro and would like to discuss how it may work in your situation, contact me to discuss the ins and outs of Ourboro and how it may or may not work in your situation. A solution that can be a saviour for one client can be very bad for another.
Application Process
I will walk you through the Ourboro application process to determine if you are eligible for their down payment help. They may give 5-15%, up to $250,000 of the home’s cost to get you closer to a 20% down payment. If we decide this is something that might work for you, I can work to get something set for 90 days. It cuts the amount you need to save, gets rid of mortgage insurance, and can reduce your mortgage.
Most clients like how fast the process can go and how found that Ourboro is a positive experience.
Next, I’ll work to get you pre-qualified and pre-approved with a mortgage lender who will work with Ourboro. You should know that most lenders will not, and this includes Canadian chartered banks.
Why Choose Ourboro Over Traditional Loans?
Choosing between traditional loans and co-ownership is tough. Ourboro offers a new approach, focusing on different risks and rewards. It uses your home’s appreciation to return benefits, which could boost your real estate gains.
Comparing Costs and Risks
Ourboro’s method is unlike banks as it skips the monthly interest. It helps first-time homebuyers by chipping in between 25% and 75% towards the down payment, easing their financial load. This also reduces your upfront costs because their share in the down payment can be 5% to 15%, up to $250,000.
If the home’s value goes up, the profit is shared, reducing your financial risks1213.
Long-Term Financial Benefits
Co-owning with Ourboro leads to major long-term gains. Unlike banks, Ourboro focuses on future home value growth, which is smart financial planning13. You can partner with Ourboro for up to 30 years, offering both flexibility and stability12.
Selling within 10 years can really boost your returns, avoiding long tie-ups. And, you get priority on the mortgage payments. This means you benefit most from an early sale, highlighting the real estate perks12.
Available Regions for Ourboro’s Services
Ourboro offers co-investment services in key Ontario spots. This makes it a great choice for those looking to buy a home in Ontario. Areas like York Region, Toronto, Peel Region, and more are covered14. They were picked for their growth potential. This helps both buyers and investors.
Ourboro is big in the Greater Toronto Area real estate scene. They’ve seen a 220% jump in GTA home purchases. This shows how well their system works in a tough market.
So far, Ourboro has helped families buy over $80 million in homes. This was thanks to a team of over 840 real estate experts and mortgage brokers that partnered in 2023. Their help has made buying a home in Ontario easier and more affordable for many.
But Ourboro is active beyond the GTA. In places like Ottawa, where homes cost less than $1 million on average, it’s a good deal. Plus, with many people in Ottawa coming from outside Canada, Ourboro fits right in with its welcoming approach.
Here’s a big plus from Ourboro: they can co-invest up to $250,000 to help you get to a 20% down payment. This is a big help for those wanting to buy a home. So, if you’re thinking about buying in an Ourboro area, this deal is worth checking out.
Understanding Ourboro’s Investment Contribution
Ourboro helps buyers by investing up to $250,000 without interest. This money helps buyers secure 20% of a house’s price. It reduces the buyer’s initial costs, making homeownership more achievable.
Contribution Limits and Equity Shares
Buyers need to put down at least 5% of the total. This leads to a fair split in home ownership based on what each party invests. Homes chosen must be valued between $550,000 and $2.5 million. Both parties share in the home’s value change and in its risks.
Here’s a detailed example of how the equity sharing works:
| Home Value | Total Down Payment | Ourboro Contribution | Homeowner Contribution | Equity Share |
|---|---|---|---|---|
| $1,000,000 | $200,000 | $150,000 (75%) | $50,000 (25%) | Ourboro: 75%, Homeowner: 25% |
How Appreciation and Depreciation Affect Shares
When home values rise, both the investor and homeowner benefit. For a $1,000,000 house that grows to $1,500,000, the gains are shared based on the initial investment. If house values drop, the loss is also shared fairly.
Ourboro not only gives substantial support to buyers but also ensures fair sharing of market risks and gains. It’s important for buyers and investors to grasp how equity sharing and home value changes work with Ourboro.
Down Payment Calculator and Savings Insights
Ourboro’s down payment calculator is very helpful for homebuyers. It shows where they stand financially. This tool helps plan out how to save for a down payment.
Using Ourboro’s Down Payment Calculator
The calculator estimates your needed down payment based on home prices. Homes under $500,000 need 5% down. For homes between $500,000 and $1 million, you need 10% for the part over $500,000.
For properties over $1 million, a 20% down payment is needed. Just enter the home’s price you’re eyeing. The calculator will then tell you how much to save for your down payment.
Tips to Boost Your Down Payment Savings
Boosting your down payment savings is possible with smart strategies. Here are some tips:
- Maximize Tax-Free Accounts: Use TFSAs and RRSPs. These accounts help your savings grow tax-free, moving you closer to your goal.
- Explore Assistance Programs: Canada has many down payment help programs. They lessen your financial load, making it easier to save for your down payment.
- Automate Savings: Make savings automatic. This keeps your savings growing steadily. Set up transfers to your savings account regularly.
- Reduce Unnecessary Expenses: Cut back on things you don’t need. This frees money for your down payment. Saving every dollar helps you buy a home sooner.
The Downside
Nothing is free in this world, and working with OurBoro to help with your home downpayment isn’t any different.
First, whatever percentage OurBoro puts into the downpayment for the home, they take out when the home is sold as a percentage of the price appreciation. If they put in 30% of the downpayment, they get 30% of the price appreciation of that home when it is sold.
The second major problem is that during this time when the home is appreciating, it is the homeowner who is making all the payments, not Ourboro. As per the example above, if Ourboro put in 30% of the downpayment, they are not paying an equal percentage or 30% of the mortgage, the homeowner is paying all of it. How about insurance, property taxes, maintenance, etc. to keep up the home? The homeowner pays all, and Ourboro pays nothing, but Ourboro still gets the percentage of the increased equity in the home.
Consequently, OurBoro is not for everyone.
The Real Problem
The difficulty is that the market is ‘pulling away’ from many buyers. A $800,000 home may go up in price faster than anyone can save for it. House prices increased 17% in Ontario in 2020, but in 2021, prices soared 25%. By 2022, the market cooled, but homes still rose 13% across Ontario. By 2023, prices had only risen about 4%. If a $800,00 home rises just 7%, it will require a homebuyer to have saved an additional $56,000 just to keep up with the market. Given the high cost of rent, inflation everywhere, and wages/salaries that don’t keep up, the market is leaving many buyers behind, making them ‘Forever Renters’.
Advice
Home buyers should consider all co-ownership options and choose the one that makes the most sense for them. It could mean parents providing some of the downpayment, either from their savings, co-signing the mortgage or through a reverse mortgage that enables parents to live in their house while they are alive and still being able to help their kids with a down payment. Family members might want to go in together and buy a home, such as brothers buying a home together, or sisters buying a home together, or even parents and adult children inter-generationally buying a home together.
Co-ownership always comes with it’s own unique kind of complications, but letting the market run away on you so that you can never have the security of home ownership is the worst of all options.
Whatever your situation, the first thing you should do is contact me to create a strategy towards home ownership which may, or may not, include a form of co-ownership. There are many options available. Everyone is different, what works for one person doesn’t work for another. Let’s strategize a customized solution for you.
If you need to borrow the money for a downpayment, or partner with Ourboro, you should make a concentrated effort to pay down the loan or buy out Ourboro at your earliest opportunity.
Conclusion
On the path to owning a home in Canada, it’s key to look at different real estate options. Ourboro offers a fresh way that avoids usual obstacles like big down payments and high monthly bills. It makes owning a home easier. With its co-ownership model, Ourboro shares your financial goals, which is a big plus.
In Canada, the government asks for down payments between 5% and 20%, depending on the home’s price. With Ourboro, you avoid these big upfront fees, making it simpler to buy a home.
Don’t forget about closing costs, around 3% of the home’s price. These are important to think about in your money plans. Ourboro helps not only with the down payment but also cuts long-term costs. With more of these options in Ontario, more people can buy a home early and with less worry.
FAQ
What Is Ourboro?
Ourboro is a Canadian company helping people own homes. They are not like banks. They partner with buyers to make owning a home easier.
They share the cost to buy a home in places like Greater Toronto Area. This way, owning a home happens faster for many people.
How Does Ourboro’s Co-Ownership Model Work?
Ourboro invests up to $250,000 to get a home you want. You and Ourboro both own a part of the house.
When you sell, any value change is shared. This means there’s no regular payment or interest, and both win together.
What Are the Minimum Down Payment Requirements?
You should have saved at least 5% of the home’s price. Ourboro adds to this to reach a full 20% down payment. This way, you won’t need mortgage insurance.
Do I Need a Mortgage Pre-Approval?
Yes, getting pre-approved for a mortgage is a must. This step makes sure you can handle the cost of the house. Ourboro requires this to join their program.
Are There Monthly Payments or Interest with Ourboro?
No, with Ourboro you don’t pay monthly or interest. They share in the home’s value changes. This keeps costs stable and fair for both.
What Are Home Maintenance and Renovation Credits?
You need to keep the home in good shape with regular upkeep. Ourboro can help make upgrades more affordable with Renovation Credits.
These credits aim to increase the home’s value. Both you and Ourboro benefit from making the house better.
How Do I Start the Application Process with Ourboro?
To apply, you fill out a form to see if you’re eligible for help. If you qualify, Ourboro’s offer stays open for 90 days.
They also connect you with experts to find your new home. This process helps you look and buy with confidence.
How Does Ourboro Compare to Traditional Loans?
Ourboro is different from regular loans. There’s no interest or monthly payments. Instead, both you and Ourboro benefit when the home’s value grows.
This new way of sharing the home makes costs more predictable. It also lowers the money stress of owning a home.
In Which Regions Is Ourboro Available?
Ourboro is for certain areas in Ontario, like Greater Toronto. It’s also in Hamilton, Guelph, and a few more. They plan to help in more areas soon.
If you’re interested and not in these places, check their newsletter. It gives updates on where they’re going next.
What Are the Contribution Limits and Equity Shares?
Ourboro helps with up to $250,000 for a down payment. This works out to 20% of the home’s price. The share you and Ourboro have in the home will be based on the money each of you put in.
When the home sells, you both get a share of what it sells for. This is fair because you both invested in the home.
How Can I Use Ourboro’s Down Payment Calculator?
The Down Payment Calculator from Ourboro is for estimating. You can see how much help you might get. This helps you plan better and save more for your new home.
