HomeShare Mortgage^TM - Frequently Asked Questions (FAQ)

Meet with a member of our personal lending team to learn more about our HomeShare mortgage.

Key Skills for Co-Ownership Living
Co-ownership living requires a mindset change as well as a commitment to the lifestyle. Shifting away from the considered “norms” of exclusive ownership and towards shared goals is essential for a positive and sustainable experience. The skills of cooperation, compassion, and compromise will be necessary for a strong foundation.

What other things should I consider?
These are not part of our application process; however, we strongly encourage everyone considering the HomeShare Mortgage to:

• Receive legal advice setting up a formal agreement. This way, everyone knows exactly how to make decisions regarding the property, what to do if there is conflict, or if someone wants to sell or move out.
• Discuss with all parties and agree on house rules. This includes any shared areas in the home that will be used and how money will be spent on monthly bills and major repairs or renovations. This could even include maintenance or chore schedules! Owners are strongly advised to put this in writing.

In addition to these skills and key considerations, the frequently asked questions below may help as you consider the HomeShare Mortgage.

1. What is co-ownership housing?
   Co-ownership housing is when a home is owned jointly by two or more parties. All owners are listed on title of the property, and all parties hold a portion of ownership in the property. The property may be one single residence with shared living spaces like kitchens and living rooms or the property may be divided into separate units.
2. Is co-ownership right for me?
   Co-ownership isn’t a “one size fits all” solution. Co-ownership can be for friends, multi-generational families, seniors seeking companionship as they age, or an alternative to roommates who rent. For those willing to invest themselves in the process, it can be very rewarding! You have an opportunity to create a more connected way of living while owning a home.
3. What are the benefits to co-ownership housing?
   There are several benefits to co-ownership. As a co-owner, you will be able to enter the housing market and build equity over time. You will be sharing the financial burden that comes with home ownership, which could mean more money in your pocket each month. Lastly, you’ll have the opportunity to create a strong community with like-minded individuals who share your values and lifestyle choices!
4. Can I purchase a property and make renovations on it to suit all co-owners?
   We recommend that anyone who purchases a property and wants to make renovations, such as adding a second unit or making major structural changes, ensure they meet all Building Code guidelines set out by the municipality, including zoning by-laws, building permits, and any other documentation needed. The responsibility for these falls solely on the co-owners.
5. Does the property need to be owner occupied?
   Yes, at least one owner has to live at the property.
6. How much of a down payment do I have to make?
   You will have to have a minimum of 20% down payment.
7. What happens if someone does not make their mortgage payment?
   All co-owners are equally and 100% liable for the mortgage payments even if they hold different shares in the property.
8. What happens if someone wants to sell their part of the property?
   All co-owners are equally and 100% liable for the mortgage. Options include selling the property, or one party buys the other out. It is strongly recommended to have a legal agreement set up at the time of purchase.
9. What happens if someone dies?
   Best practice is to have a legal agreement drawn up at the time of your purchase and it will be beneficial to have this upon the death of one of the owners. It will provide details of how the ownership is set for example, tenants in common versus joint title.
10. Are prepayment privileges allowed?
    Yes, if you choose our regular mortgage, you can pay off up to 20% of the outstanding balance in the form of a principal only payment and increase your payment by 20% once each year.
11. Is this type of mortgage available for all terms?
    Yes, the HomeShare Mortgage is available for all 1-to-5-year terms.
12. What happens if one party or all parties want a mortgage secured line of credit (LOC)?
    A mortgage-secured LOC is available with the HomeShare Mortgage and similar to the mortgage, each party would have to co-sign for the other.
13. How many applicants are allowed?
    A maximum of four applicants are permitted. Additional applicants could be considered, and fees may apply.