We invest in your home by contributing up to $250,000 toward the down payment. By contributing to the down payment, we each own an equity share, or percentage, in the home. When it comes time to sell, we divide the proceeds of the sale according to our equity percentage. We both gain when the home appreciates in value and share the risk if it depreciates.
Since Ourboro’s contribution is invested directly in the home, it’s not a loan. There is no interest and no additional debt. You don’t pay us back, the home does when you decide to sell.
There is a very specific sequence in how the funds from the sale of your home will be distributed. The proceeds will first be used to pay back anything owed to lenders, followed by any third parties as part of closing transaction costs. Next, the total amount of the principal payments you have made towards your mortgage will be returned to you. Lastly, all remaining proceeds will be divided based on our respective equity percentages in the home.
This is a high-level explanation of what happens when the home is sold. Please visit How it works to learn more.
Ourboro is designed to help individuals and families that have the income to support a mortgage, but don’t have the savings available to make a full down payment on the home they want. With home prices increasing at a faster rate than their savings, many are left wondering if, or how, they will ever own a home.
To co-buy a home with us you must:
Also, because the term of our investment is 10 years, you are ideally looking to own the home for a maximum of 10 years.
Sound like you? See how much we can contribute towards your down payment.
Ourboro makes money in two key ways.
Our main source of revenue is through appreciation in the value of homes we co-buy. We work with homebuyers to co-buy homes that are likely to appreciate in value. When the home is sold, Ourboro receives our share of the equity in the home. We both benefit when the value of your home grows over time and, if your home decreases in value, we share in any losses together too.
Ourboro’s second source of revenue is through the management fees paid by our investors. Our investors are individuals that are eager to invest in real estate in the Greater Toronto Area, but don’t want to act as property managers or landlords. By investing in Ourboro’s fund, our investors are able to diversify their risk and realize the benefits of investing in GTHA real estate.
Ourboro does not provide loans to homebuyers. Instead, we invest in, and co-own, the property with you. As a co-buying partner, when Ourboro buys a home with you:
We will co-own the home together for 10 years or until you decide to sell the home, whichever comes first. Having a 10 year term allows both of us to maximize our returns, helping you build a larger nest egg for a subsequent down payment.
If our 10 year term is coming to an end and you would like to keep living in your home, Ourboro has several options available, including the opportunity to buy out our share. If you think you will want to remain in your home after 10 years, you can contact one of our Homebuyer Relationship Leads and they can walk you through your options.
You can apply to co-buy with Ourboro at any time. If it seems like we’re a fit, you’ll be invited to a discovery call with one of our team members. This gives you the opportunity to ask any questions about Ourboro and lets us learn more about you and your home buying journey.
After your discovery call, based on when you completed your application, there may be a wait to join our next open round of homebuyers. This depends on how we manage referrals to our lending partners as well as deployment pacing required by our investors.
When your homebuyer round is open, we will connect you to one of our lending partners to receive a mortgage pre-approval. After receiving your mortgage pre-approval, our team will determine how much we can contribute towards your home and begin the onboarding and home search process.
After being referred to a lending partner, signing a successful offer on a home can take anywhere from 2- 4 months. This largely depends on how quickly you receive your mortgage pre-approval and how long you spend searching for your perfect home!