Loan to help Ourboro bring co-ownership model to first-time buyers
Canada Mortgage and Housing Corporation (CMHC) has granted a $5 million repayable loan to real estate investment company Ourboro to support first-time homebuyers in Ontario.
The loan, issued through the Shared Equity Mortgage Providers (SEMP) Fund, will help Ourboro finance its co-ownership model, which provides up to $250,000 or 75% of the down payment for eligible buyers who have saved at least 5% of the down payment and can support the mortgage payments.
"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 Sean Fraser, minister of housing, infrastructure and communities. “That's what the SEMP fund was all about – partnering with innovative organizations like Ourboro to support first-time homebuyers.”
The SEMP Fund, administered by CMHC, provided repayable loans to support existing shared equity mortgage providers, attract new providers, and encourage the construction of new homes across Canada. While the program is no longer accepting applications, CMHC remains dedicated to exploring new initiatives to promote housing solutions and homeownership.
Shared equity mortgages allow eligible buyers to reduce their monthly mortgage payments without increasing the amount they must save for a down payment. The shared equity portion typically requires no monthly payment and is repaid, along with a percentage of property appreciation, when the property is sold.
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Ourboro partners with homeowners, providing a portion of the down payment in exchange for a share of the property's future appreciation. The funding will be used to provide shared equity mortgages to first-time homebuyers in the Greater Toronto Area and other select communities across Ontario.
"All of us at Ourboro are committed to working with others who share our conviction that home ownership is critical to the financial well-being of individuals, families, and communities," Ourboro cofounder Nick Pope said in a Press release. "Adding CMHC to this network is an important step in building consumer awareness and reinforcing the co-ownership advantage with a broader audience."
The $5 million loan to Ourboro is part of the federal government's broader efforts under the National Housing Strategy, an $82+ billion plan aimed at providing affordable housing solutions for Canadians, particularly those in greatest need, such as seniors, Indigenous Peoples, and those at risk of homelessness.
As of December 31, 2023, the government has committed over $42.99 billion through the National Housing Strategy to support the creation of almost 135,000 units and the repair of over 270,000 units across the country.
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