The Canadian government is allocating a $5 million repayable loan through the Shared Equity Mortgage Providers Fund to Ourboro Inc., which will fund shared equity mortgages for first-time homebuyers in the Greater Toronto Area and select communities across Ontario.
Shared equity mortgages gave eligible buyers the ability to reduce their monthly mortgage payment without increasing the amount they must save for a down payment. The shared equity mortgage typically requires no monthly payment and is repaid along with a percentage of property appreciation when the property is sold.
Ourboro’s shared equity model provides up to $250,000 for Canadians who have saved at least 5% of a down payment and have the income to support mortgage payments. Ourboro, in partnership with the homeowner, provides up to 75% of the down payment.
The SEMP Fund was administered by Canada Mortgage and Housing Corporation as part of the nation’s $82 billion National Housing Strategy; applications are no longer being accepted under the SEMP Fund.
“We are committed to helping build more homes across this country, while finding new ways to ensure that more people can buy them today,” said Canadian Housing Minister Sean Fraser. “That’s what the SEMP fund was all about – partnering with innovative organizations like Ourboro to support first time homebuyers. As we embark on the next phase of our journey through the National Housing Strategy with our new housing plan, we remain committed in our mission to ensure that every Canadian has a safe and affordable place to call their own.”
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