GTA HOMEBUYERS CAN SAVE FOR A DOWN PAYMENT 24 YEARS SOONER USING OURBORO'S CO-OWNERSHIP MODEL
Using the same data as the National Bank Housing Affordability Report, Torontonians could own a home in 7.9 years vs. 31.8 years with a co-ownership solution
TORONTO, Sept. 15, 2022 /CNW/ - Ourboro, a Toronto-based company dedicated to providing access to homeownership through co-ownership, analyzed National Bank's recent Housing Affordability Report, and using the same data, analyzed the time that would be required to save for a down payment to own a home in Toronto using a co-ownership model. The data showed that Torontonians could own a 'non-condo' home in 7.9 years vs. 31.8 years and a condo in 4.3 years vs. 5.8 years by using a co-ownership solution.
Without Ourboro |
With Ourboro |
|||||
Median Home Price |
Down Payment Required 2 |
Years of Savings |
Down Payment Required 2 |
Years of Savings |
Reduction in # of Years to Save |
|
Non- Condo |
$1,408,797 |
$281,759 |
31.8 |
$70,440 |
7.9 |
23.9 years |
Condo1 |
$764,876 |
$51,488 |
5.8 |
$38,244 |
4.3 |
1.5 years |
1 Properties below $1M do not require a minimum 20% down payment |
|
2 Does not include additional savings required for closing costs (i.e. land transfer taxes) |
WHAT DATA WAS CONSIDERED?
- Average Household income: $88,463
- Estimated Savings rate: 10% per month (as per National Bank Report)
- Average Ourboro contribution to down payment: 75%
Ourboro's co-ownership model is a new way for first-time homebuyers to realize the goal of homeownership, purchasing the home they want while having a partner to co-invest up to $250K of the down payment. Ourboro will contribute between 5%-15% of the home's value to help buyers reach a 20% down payment.
To be eligible for an Ourboro co-invest, applicants must:
- Be looking to buy a home within the Greater Toronto Area
- Contribute a minimum of 5% of the home's value as a downpayment
- Have sufficient income to qualify for a mortgage
- Be planning to live in the home for less than 10 years
"There is no question that it is just getting harder and harder for first-time homebuyers to purchase a home," said Alex Kjorven, Chief Product Officer, Ourboro. " We hope we can make that more attainable with our co-ownership model. When comparing data with National Bank's recent Home Affordability Report, the co-ownership model gives people the chance at homeownership 24 years sooner – that's a lifetime of memories made and brings the goal of home within reach."
For more information about Ourboro, to sign-up for an info session, or to start the application process, please visit https://ourboro.com/how-it-works/.
ABOUT OURBORO
Ourboro is a private, Toronto-based company dedicated to providing access to homeownership through co-ownership. Ourboro will co-invest up to $250K towards a qualified applicant's down payment. By providing funding toward the down payment alongside the co-owner, Ourboro purchases a share in the future value of the home. Throughout a ten-year term, additional programs, such as maintenance check-ups and renovation credits, are available to co-owners to help preserve and increase the home's value. Like a true partnership, both parties share in the profits when sold. Ourboro is currently available for homeowners in the Greater Toronto Area (GTA). For more information, please visit Ourboro.com.
SOURCE Ourboro
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Media Contact: Jo-Anne Stayner, Fresh Public Relation, [email protected], 604.603.0657
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