How It Works
Are you a first-time home buyer, recent graduate, immigrant or investor? Learn how shared home ownership works to make your dream home affordable!
Shopping for your Dream Home
Shopping for your dream home involves a structured process, beginning with financial preparation and a clear vision of your priorities, followed by a targeted search and a series of legal and financial steps to close the deal.
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- Assess Your Finances: Start by evaluating your income, savings, existing debts, and credit score. Factor in all potential costs beyond the mortgage, such as property taxes, insurance, utilities, and ongoing maintenance.
- Set a Budget: Determine how much you can realistically afford. Experts suggest keeping your total monthly mortgage payment (including taxes and insurance) to no more than 25% of your take-home pay on a 15-year fixed-rate mortgage.
- Get Pre-Approved for a Mortgage: Secure a mortgage pre-approval from a reputable lender. This provides a clear budget, demonstrates your seriousness to sellers, and can expedite the closing process later.
- Define Your Vision: Differentiate between “needs” (deal-breakers) and “wants” (nice-to-haves). Consider your current and future lifestyle, family dynamics, architectural style, desired layout, and essential features (e.g., number of bedrooms, a home office, a large backyard).
- Choose the Right Location: Remember the adage “location, location, location”. Research neighbourhoods for safety, school quality, proximity to work, amenities, and future development plans.
- Dream Home out of reach?: Contact the folks at BuyAssist! If you and your house qualify, we will match your needs with an investor’s desires to help you purchase that dream home!
How it Works: 1,2,3
Buying your first home is a major investment in your future. Finding an affordable home can be challenging. With BuyAssist you can find an investment partner to share in your excitement and get started right away! Let’s get started:
1. Initial Setup
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- Identify a Home and Funding Gap: A user finds a home (e.g., $400,000) but only qualifies for a partial mortgage (e.g., $200,000).
- Investor Match: BuyAssist matches the user with an investor who provides the remaining funds (e.g., $200,000).
- Establish Joint Ownership:
The user owns 50% of the home.
The investor owns 50% of the home. - User Moves In: The user gains immediate access to and benefits of the home.
2. Ongoing Phase
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- Monthly Payments: The user makes monthly payments to the investor (if the investor holds the mortgage financing) at fair market rates.
- Maintenance: The user is normally responsible for maintaining the property in good condition
- Appreciation: The home’s value increases over time, benefiting both the user and the investor proportionally.
3. Exit Strategy (The Future)
Option A: Selling the Home
- The home is sold (e.g., for $600,000).
- Proceeds are split proportionally: the user keeps their share (e.g., $300,000), and the investor keeps their share (e.g., $300,000).
Option B: Buying Out the Investor
- The user’s financial situation improves and their personal mortgage balance reduces.
- The user refinances their mortgage to cover the investor’s share of the home’s current value.
- The user pays the investor’s share to them, becoming the sole owner of the home.
BuyAssist your next home!
BuyAssist, available on Android, iOS, and Web. Make housing affordable again.