“It’s the opportunity to own your own home and not likely have to pay any more than what you would be paying if you were renting… maybe even less.”
Whether you’re looking for a home in Toronto, where the average price is now over $900,000 – with monthly mortgage costs of $3-4,000 not uncommon; or in other major urban centres across
the province where prices keep going up dramatically, the reality is that a growing number of Ontario families simply can’t afford to own a home.
Enter Trillium Housing, which is tackling the problem head on, working with developers in communities such as Toronto and Hamilton to build homes at a price point the average family can afford. For example the company’s first project in the GTA, known as the LOOP Urban Towns, start in the 300s, which represents a much lower barrier of entry into the housing market as well as greatly
reduced minimum down payment costs. The company is also offering a shared risk Trillium Mortgage to complement the purchaser’s bank mortgage for those who qualify, helping to significantly reduce monthly carrying costs.
The way this works is if a family puts $20k down along with a $180k bank mortgage and a $100k Trillium Mortgage to purchase a $300k home, they only have to make monthly payments on the $180k
mortgage until they decide to sell the home. The fact there’s no need to make any payments on the $100k Trillium Mortgage portion alone translates into reduced monthly payments of $4-500
and thousands of dollars less per year, based on current mortgage rates. So over a five year period, the family could end up spending $20-30k less on mortgage payments.
When the time comes to sell the home, if it has gone up in value by a specific percentage, the original Trillium loan amount is paid off, along with its
corresponding percentage increase. And because it’s a shared risk loan, if the homewere to go down in value, the Trillium Loan would share in the risk with a lower
payout than the original loan amount. In fact, the Trillium Mortgage would incur more of a downside reduction than if based on the shared formula. As well, in the spirit of attracting homeowners as opposed to speculative investors, Trillium Mortgages have anti-flipping penalties to serve as a strong disincentive to sell Trillium financed homes for a quick profit.
“What we’re offering is the kind of creative solution the GTA market has been lacking far too long,” observes Trillium Housing partner Joe Deschênes Smith. “It’s the opportunity to own your
own home and not likely have to pay any more than what you would be paying if you were renting… maybe even less.”