No one needs to be reminded that affordable housing is a pressing crisis in Canada.
Among others pushing for solutions, Canadian tech startups work everyday to alleviate this troubling predicament through innovation. One of them is Lotly, who is gaining a reputation for its approach to homeownership and investment opportunities.
Backed by a consortium of venture capital firms such as N49P, Forum Ventures, and Panache Ventures, this fintech team is promising a future where homeownership is within reach for all Canadians.
The mission? To pave a feasible path to homeownership. The strategy? An original homeownership model, underpinned by a team of product experts, legal professionals, and real estate agents.
Lotly’s model enables potential homeowners to buy a home with 5% down. The company steps in, investing alongside the buyer to reach the typically daunting 20% down payment mark.
Features that make Lotly’s offering appealing include zero interest on the company’s investment, the buyer’s freedom to decide when to buy out the company, and a guarantee that the buyer will always retain a majority of the home equity.
“With the current economic climate and the challenges of the housing market, potential homeowners need to be aware of all their financing options,” says Martyna Gatkiewicz, the CEO of Lotly.
The platform’s impact is not confined to homeowners. Investors can start investing in real estate with as little as $1,000 through Lotly, with a projected average annual return of up to 15 percent.
When homes are sold or refinanced, investors receive their initial investment back, plus a share of the appreciated property value.
It’s a similar concept to other real estate investing platforms such as Vancouver’s addy with its own twist—a new lens through which to view the world of homeownership and real estate investment in Canada.