• Own a piece of the housing market
• Stick together with your crew
• Pool your money with up to three other people
• Receive fair and competitive rates
• Take advantage of flexible payment schedules
• Save more with generous prepayment privileges
• Leverage our advice and avoid common pitfalls

The home buying process is intimidating enough, so why go in alone? Our Multi-Ownership Mortgage  allows members to help loved ones who have good credit but lack the income to meet standard credit granting criteria. It also allows members to pool resources to meet the standard credit granting criteria.

Our Multi-Ownership Mortgage will work with all of our mortgage products. The application process for a Multi-Ownership mortgage is no different than signing on to one of our conventional mortgages.

The Multi-Ownership Mortgage is great for a wide array of people. This offering is great for parents who wish to help their adult child purchase a home, parents looking to purchase a home for their adult child pursuing a postsecondary education away from home, an adult helping to buy a home for elderly parents or relatives who are on a fixed income, or even family members who wish to pool their money together to live communally within a single home. It is a great solution for roommates looking to get into the housing market or for working professionals who want to move out of their parents’ homes.

While it’s only natural to want to help a friend or family member, it’s important never to place your financial wellbeing at risk.

Before you begin, here are a few things you should know:

• Withdrawing money from your RRSP’s may place your retirement at risk and there are tax consequences.

• All borrowers on the mortgage are equally liable for the debt, including yourself if you’re a co-signor or guarantor.

• Based on your financial situation, leveraging equity in your home may not be the best idea, as a market correction could create difficulty for you in repaying the equity you withdrew from your home.

• Providing support financially or as a co-signer and guarantor can get complicated if the person you are helping goes through a divorce after the home purchase.

• There are other home ownership costs in addition to the mortgage payment which should be considered such as property taxes and maintenance. Will you need to provide support for these costs as well?

• This program does not include the purchase of non-owner-occupied investment properties.

You’re looking good but do keep in mind that life can be unpredictable. Mortgage or life insurance is a good idea so that you are protected in case of death or critical illness.

Sometimes it’s easier just to provide a cash gift which isn’t repayable. For this transfer to be considered a cash gift, you must provide a letter addressed to the person outlining the total amount gifted and specifically state that the money is non-repayable. The person will share this document with the Banking advisor at Alterna Savings during their mortgage application.

This will help you keep track of everything:

• Have you settled on a co-borrower? For instance, a family
• Have you selected the very best mortgage product for your needs?
• Have you spoken with a lawyer?
• Take a deep breath. You’ve got this. Whether you do, or not, we’re here to help every step of the way.