Toronto proptech startup Key launched today with an innovative co-ownership model that helps people get on the property ladder decades faster.
The first-of-its-kind model provides the opportunity to co-own a home to live in and build equity, with an initial small down payment of 2.5 percent of the home’s value.
Key is launching first in Toronto where the average time to save for traditional homeownership is 27 years. Key is making homeownership accessible without needing to qualify for a mortgage or save for the typical 20 percent down payment.
The model is a hybrid between renting and owning where monthly payments are comparable to market rent and a portion of the payments serve to increase home equity over time. The investment can grow from day one based on how the real estate appreciates. Every time more is invested, the lower the resident’s monthly rent-equivalent payments will be.
“Homeownership is unattainable for far too many people. Key is fundamentally changing the way real estate works for the better,” said Rob Richards, co-founder and CEO of Key. “We are excited to help our young people, frontline workers, and new citizens start building home equity many years sooner than they thought possible – and without needing to take on massive debt. The three thousand people on our growing waitlist underscore how significant the need is.”
By partnering with property owners, investors, and governments to secure condominium suites in premiere buildings and soon, single-family homes and townhomes, Key aligns real estate investor capital with resident capital to supplement the cost of homeownership, making it more affordable.
Investors in Key’s technology platform include Plazacorp, Luge Capital, iNovia Capital, N49P Ventures, the US National Association of Realtors, Ryan Holmes, Red Jar Capital, Moderne Ventures, and more.