You have questions. We have answers.
Are there any geographical restrictions?
We are currently limiting purchases to Ontario Canada, but expect to expand to other provinces soon.
Can you apply as a group for a home?
Married couples, common-law partners and direct family members (e.g. parents) can apply as a group. Key does not support groups of friends or roommates applying together as governance issues can occur and complicate or undermine downstream mortgage applications.
What information will I need to submit during the application process?
In order to verify your information, our seamless automated verification process will prompt you to securely connect your bank account to verify your income, provide your SIN to verify your credit history and submit a photo ID to verify your identity. Additionally, we may need proof of employment, business income and tax returns.
Who is this program for?
Key is making homeownership accessible to all the people currently locked out of owning. This program is for those who struggle with the barrier of a large down payment and mortgage qualification but can carry the costs of being a homeowner today.
Are home offers conditional on anything?
Yes, offers to purchase homes depend on a favorable home inspection that doesn’t reveal material issues such as structural damage, hazardous substances, prior infestations, or other issues that neither of us want. You will also have a chance to review the contract with your lawyer before we finalize the deal.
Are there multiple land transfer fees?
The land transfer fees are initially covered by Key and are only payable by you at the end of your five year term when you purchase your home from Key.In Ontario, First-time homebuyers of an eligible home may be eligible for a refund of all or part of the tax
Do I have to use your realtors or can I work with someone I already know?
You can bring your own realtor, subject to Key’s due diligence and approval. Key will support the realtor by explaining the program and home budget requirements.
How will I find my dream home?
Once you have been approved to enter the program, we will set a home budget for you. You’ll be paired with one of our approved realtor partners who will guide you step by step on your home search journey, including sharing eligible homes on market, conducting tours and completing the offer to purchase.
Is there a limit to how expensive a home can be?
We cap at a maximum $1,175,000 purchase price but can go higher on a case-by-case basis.
What types of homes will I be able to buy?
Condos, semis, townhomes and detached homes are all fair game - subject to your home budget.
Who will be on the title of the home?
As your home purchase partner, Key will be on title of the property until you are ready for full ownership at the end of your 5-year term.
Can I use my RRSP and FHSA in this program?
You can use your funds from RRSP and FHSA at the end of the 5-year term as additional down payment towards your final purchase of the home from Key.
Does this count towards a principal residence exemption?
Yes, this program is structured to help participants qualify for the principal residence exemption.
Does this model comply with Islamic finance or halal guidelines?
Yes, there are adjustments available to make the program compliant with Islamic finance principles.
How long is my Key ownership term?
The term is 5 years. That means we will put you on the right path to buy the home from us at the end of your 5-year term.
If I can't pay my monthly amount anymore, what will happen?
We are here to support you on closing the home at the end of 5 years. Our team will work with you to find a solution that can help you continue on your path to homeownership even if there are bumps along the way. We encourage participants to reach out if there are financial difficulties.
Is there a minimum down payment I need to make?
The minimum down payment starts at 2.5 to 5% of the home price. Your initial down payment and ongoing equity contributions you make will be credited toward your final purchase price at the end of your term.
What do I own during the term? How does my equity growth work?
Each dollar you contribute to your equity account earns a set annual 12% return, or as specified in your agreement. This equity growth helps position you with a 10% deposit by the end of your five year term. Your initial and subsequent deposits grow at a fixed rate specified in your agreement. All deposits and their compounded growth go into your home equity account. By the end of the term, you'll have enough equity and an income level (which you were screened for) to qualify for a CMHC-insured mortgage to fully purchase the home.
What will monthly payments look like?
Your monthly payment is comparable to carrying costs of a home you own. The payment also includes an additional amount which will go towards building your equity to reach the 10% down payment in five years. Unlike other programs, your initial and subsequent down payment amounts (equity deposits) grow over your 5-year term with leverage and compounding.
Am I obligated to become the sole owner at the end of my term?
You are committing to buying the full home from Key at the end of your initial 5-year term by taking on a mortgage. The final purchase price will be predetermined when you sign the contract at the beginning.
How is the home value determined at the end of year 5?
We apply an annual growth rate to the initial home price that determines your purchase price at the end of the term.
What happens if I can’t qualify for a mortgage in year 5?
Our initial verification process is designed to safeguard your interests and ensure that you can qualify for a mortgage at the end of your term. However, if things change in your financial situation during your occupancy period, we encourage you to contact us as soon as possible. Our main goal is for you to achieve full homeownership and we’ll work with you to find a solution towards that end. This could include extending your term by a year to give you enough time to get your financial situation in good standing.
