Aviva Canada, the Toronto-headquartered property and casualty insurance group, has invested in OneClose Inc., a fintech that helps the owners of newly constructed Canadian condominiums save thousands of dollars in interim fees.
Consumers who buy a newly built condo in Ontario face a time period after they move into their unit when they cannot obtain a mortgage. Referred to as the Interim Occupancy Period, it requires condo purchasers to pay Interim Occupancy Fees to the builder, which includes the interest on the remaining balance of the condo unit, property taxes, and maintenance fees.
OneClose helps solve the problem of interim occupancy by allowing consumers to obtain mortgage financing between the occupancy date provided by the builder and the date the condominium registers, thus allowing buyers to save money while unlocking their ownership rights and immediately building equity.
The companies did not disclose the depth and scope of the investment.
“This investment aligns with Aviva’s mission to drive value for our clients,” said Andy Armstrong, head of developer surety and home warranty at Aviva Canada. “During these uncertain times with high inflation and interest rates, consumers have enough on their plates. Through our Surety solutions we want to provide protection to builder projects and help customers overcome the interim occupancy pain point in the market for greater peace of mind.”
Kevin Murphy, CEO at OneClose, added, “We are thrilled that Aviva has expanded that relationship by investing in our company. We share the belief that OneClose will be a game changing solution to the problems caused by interim occupancy, allowing purchasers of new condominiums to save substantial amounts of money by avoiding unnecessary expenses. OneClose is emblematic of a private sector solution that government at all levels have been seeking to help counteract the housing affordability and supply crisis in Canada.”