Frequently Asked Questions

Shared home ownership can be a complex arrangement.  Read the frequently asked questions and answers below to become better acquainted with the process.  

What is the Shared Home Ownership program all about?
We are focusing on creating affordable housing, by taking a house with a legal suite and selling it to two compatible people, couples, or families.
Why would I participate in the Shared Home Ownership program?
Many reasons come to mind: • The average home cost makes it impossible for a lot of people to enter the market • Having to stress test at a 2% higher interest rate as of Jan 1, 2018, is taking 20% more people out of the market • Renting is expensive, a waste of money and is simply paying someone else’s mortgage • The low current interest rates on a purchased home, means 50% of your mortgage payment goes towards principal • Some people are forced to look at condominiums because of their budget, and are often subject to rules regarding age restrictions, pets and children, or they have no garage, storage, or outside space.
Will the people be living together, and sharing the kitchen for instance?
No. The home will have two legal suites, so each party will have their own legal residence and be able to occupy their designated inside & outside space according to their agreement and the municipal laws.
This isn’t a new idea. How is your program different?
The magic of our program is that we have a templated system to help guide people through the process. Helping people find a match they will be compatible with, (kind of like a dating service) will be one of the biggest value propositions of the program. Also, our comprehensive legal agreement will help people pinpoint what is important to them and will help protect their legal rights and interests. Common and private areas can be designated, similar to a strata.
Will there be one mortgage or two mortgages?
There will be one mortgage, shared proportionately according to the amount of home and land that is shared. In strata terms, this would be referred to as unit entitlement.
Will both parties be on title and how is percentage of ownership established?
Yes, all parties will be on title in proportion to how much they own. It will be set up similar to a strata, in the fact that private and common areas will be designated. For instance, driveways, garage, patio, front, side or back yards can be agreed to be either private or common areas, depending on their needs.
How will expenses by paid, and will a contingency fund be set up?
We are suggesting that purchasers create and contribute monthly to a contingency fund. Ideally, they would get a professional depreciation report on the home. This would provide information to establish a monthly amount required to maintain the home in great condition. In the legal agreement, there are sections for Maintenance & Repair, Capital Improvements and Property Expenses. Owners would pay for expenses based on their percentage of ownership, and use the agreement as a guide.
What happens if someone doesn't pay their share of the mortgage or expenses?
The legal agreement sets out a series of consequences for non-payment under the default terms. The binding agreement each party signs, allows for legal repercussions and an arbitration process for non-payment or default.