The Enhanced Homebuyers Program: The Co-Ownership Model

The Enhanced Homebuyers Program

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When planning on buying a home, the first steps are typically to assess your finances and have some money saved up to put down on a home. With the cost of living constantly rising, it can be difficult to save enough to get the home you really want. While a few of us may manage to save enough money and afford the monthly payments, most of us require financing or assistance programs to make it happen.

The Enhanced Homebuyer Program (EHBP)  is a co-ownership model designed to help homebuyers afford their down payment. This program contributes anywhere from 5%-15% of the home’s purchase price up to $250,000 will be contributed by the program towards the down payment, giving the program co-ownership of your home.

When it comes time to sell, both parties share the profits based on one’s contribution. Since the program’s contribution is eventually repaid by the sale of the house, there are no additional payments such as interest added on.

Whether you're a first time homebuyer or looking to upsize, let’s take a closer look at the Enhanced Homebuyers Model so that you can own a home of your own sooner than you think.

Get started today by filling out our assessment form here.

How is this financed?

The Enhanced Homebuyers Program is funded by two sources. First being, revenue generated through appreciation in the value of homes through which we co-buy. Secondly, the program approves homes likely to appreciate in value. Both parties will benefit when the property value appreciates but, both parties will lose out when the value of the property depreciates.

Does anyone qualify?

Anyone looking to join the EHBP must meet certain criteria to qualify:

• Be a Canadian Citizen

• Purchase within the City of London boundaries 

• Are purchasing the home as a primary residence

• Are purchasing a home between $550,000-$2,500,000

• Are able to invest at least 5% of the purchase price towards the down payment if the value of the home is up to and including $500,000.

• Are able to invest at least 10% of the purchase price towards the down payment if the value of the home is between $500,000-$100,000.

• Are able to qualify for the mortgage amount needed to buy the home

Why go through our Enhanced Homebuyers Program?

The model is designed to help those that have the income to support and pay for the monthly mortgage payments, but don’t have the savings to afford the home they are looking for. Even if you have an offer on a home and have at least 40 days until closing, we can expedite the process and help you close the deal. This would make us co-owners. 

Some of the reasons buyers chose to go through the program would be 

• Get into the market sooner rather than later

• Save on closing costs

• Work alongside a partner that only profits, when you profit

• Own your home sooner instead of renting

• Help you close a deal

• Skip the townhouse and get the home you want

Who is in charge of maintenance and repairs?

You will fully get to enjoy the home as your own so, it is your responsibility to keep the property maintained and well kept. The program’s contribution buys them shares in the home, not access to living in the home. Any minor changes to the home can be done entirely at your discretion. For larger renovations, we do require knowledge in advance. At the time of sale, both co-owners want the value of the home to have appreciated over time so you get more equity from the home.

Because of this, you can be eligible for renovation credits which will give you some, if not all of the funds in return for increasing the value of the home.

An Example

The following is to demonstrate how the process works WITH contribution from the program ,from the time of purchase to time of sale based on a purchase price of $600,000.

Let’s say you are looking to purchase a $600,000 home and you need a 20% down payment for your mortgage.

You have 10% saved ($60,000) for a downpayment but you cannot qualify for the mortgage due to the lack of savings. The program will contribute 10% ($60,000), and together you have 20% ($120,000) to put down. The percentage that we contribute will be the same percentage we receive in equity at time of sale.

This demonstrates the ownership equity shares based on the contributed down payment. As you have both contributed 10% of the 20% down payment, you each hold 50% of the equity of the home. When you go to sell, this is how the equity will be distributed.In the above example, the remaining proceeds are split equally.

What happens when I sell?

You can end the contract at any time and list your home for sale, or you can buy out the Enhanced Homebuyers Program out when you have the funds available. First, the lender will be repaid back for any outstanding debts, followed by any closing costs. After this, any principal payments you have made towards your mortgage will be repaid to you in full.

All remaining funds, the appreciation of the home, will be distributed according to each parties share contribution.

Feel free to contact us with any questions,

Sound like something that is up your alley?

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Get started today by filling out our assessment form here. This helps us better understand your situation and financial standing. This information is a baseline form to ensure you qualify for the program, all information is private and confidential.