Owning a piece of real estate in Ontario comes with a hefty price tag, but a new service called Ourboro is helping people foot the bill.
In an effort to help homebuyers afford their down payment, Ourboro gives them the opportunity to “co-invest” in a home, in exchange for a big chunk of change.
Specifically, homebuyers can get 5% to 15% of the purchase price, up to a maximum of $250,000.
It’s a pretty straightforward concept, and a genius one too.
“Our down payment contribution is not a loan, so there is no interest or additional debt,” says Ourboro’s website.
“Instead, we buy a share of your home. When you decide to sell, we each receive our fair share of the gains or losses.”
The program is available to Ontario-based buyers in 11 regions, including Toronto, York, Peel, Durham, Halton, and beyond.
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The company receives its funds from real estate investors. When the home is sold, the returns are distributed to the investors who earn a share of the appreciation.
If the home goes down in value, then the losses are shared as well.
That’s why Ourboro offers a range of programs and services to help preserve and increase the value of the home.
Homebuyers can submit an application and if it’s deemed a good fit, they’ll be paired with a real estate agent to search for the perfect home.
When it comes to ownership, the division of equity is based on each party’s contribution.
So if you give 25% and Ourboro gives 75%, you’ll have 25% of the home’s available equity.
Once the home is yours, you can co-own it for up to 30 years. However, it’s ideal for those looking to sell within 10 years.
This is one of those ideas that has us smacking our heads for not coming up with it ourselves. But, we’re definitely glad it exists.