Here are the frequently asked questions by Ownershiip customers:

DOWNPAYMENT
APPROVAL
MORTGAGE
EXTRA COSTS
REFINANCING (EXIT)
FORECLOSURE (DEFAULT)

DOWNPAYMENT

  1. How does Ownershiip investment (downpayment) work?
    For our investment, we take an equity stake in the property in addition to a percentage of the price increase during the course of the investment. For more details see here.
  2. How do I qualify for the downpayment investment?
    Simply fill out the application form and send us the information about your financials and your future home. We will analyze the financial affordability with respect to the property and the mortgage you will be required. This is a soft analysis and it won’t affect your credit score.
  3. How do I increase my qualifications for the downpayment investment?
    The rule of thumb is if you can afford the mortgage with half of your salaries, you will qualify for the downpayment. Since our mission is to increase homeownership, we give priority to the first time home buyers.
  4. Is there an interest on the downpayment that you invest in my property?
    No. There is no interest on the downpayment as it is an investment in your homeownership. For the investment, we share the equity in your property. Similar to you, we will make money if there is any appreciation in the property’s value.
  5. Would I be making monthly payments for the Ownershiip investment?
    No. There is no monthly payment for the Ownershiip investment in your property. We will take an equity stake in the property. Since this is an investment, we may lose money if the property depreciates in value.
  6. What happens to your downpayment investment if the price of my property goes down?
    If the property depreciates in value, we will lose money proportional to the depreciation.
  7. If you lose money on your investment when the prices in real estate go down, how do you expect to make money?
    We will make money when the property goes up in value. We have our incentives perfectly aligned with the homeowner. If the prices goes down due to recession, low maintenance, natural disasters or other factors, we may lose money.

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APPROVAL

  1. What specific information do I need to send in to get approved by Ownershiip?
    We require proof of income, your debt and assets analysis and the MLS report of the property that you received from your realtor.
  2. How do you value the property when I purchase my home?
    We use the same appraisal that you use to get your mortgage. In a few cases, we may require a new appraisal, the cost of which you will be required to cover.
  3. Who pays for the appraisal?
    In most cases, it is the buyer that will pay for the appraisal. The appraisal fee is typically under $500. You may be able to negotiate that fee with the seller.
  4. How do you value my house when I want to buy back Ownershiip shares?
    When you decide to exit the equity partnership with Ownershiip, we will ask for an up-to-date appraisal. If you do not have a recent (up to 120 days) appraisal, we will conduct a new appraisal and you will be responsible to cover the appraisal fee of $500.
  5. Once approved, how long will you hold my offer? 
    Your offer is valid for 30 days from the approval date.
  6. Can I get a pre-approval?
    Yes. At any point you can submit your application for a downpayment investment and get a pre-approval from us. In fact, a lot of people use our application process to validate their purchases.

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MORTGAGE

  1. Do you offer a mortgage as well?
    No. We do not offer mortgages but we have a few partners that we can recommend to you. We would like you to go with a lender that offers the lowest mortgage rate possible.
  2. Will the downpayment investment affect my mortgage approval?
    Since there is no monthly payment for our investment, Ownershiip downpayment will not affect your mortgage approval. In financial terms, Ownershiip investment is not liability but an asset, and should help you get the mortgage approval.
  3. If I find a lower rate for a similar mortgage elsewhere than from your recommended partners, will you approve it?
    Yes. Remember that we are co-owners and our goals are perfectly aligned with yours. We want you to go with the lowest mortgage rate possible.
  4. Will the downpayment investment affect my mortgage rate?
    Ownershiip investment should lower your monthly payment and help you get a better mortgage rate. Together we will be providing a larger downpayment (preferably more than 20% of home price) and have a positive outlook for the future of the property.
  5. Can I get a second mortgage on my property? 
    Yes. That’s totally up to you. In fact, we encourage our homeowners to make every financially sage decision to help protect their homes.

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EXTRA COSTS

  1. What are fees are associated with the Ownershiip investment?
    Your application for Ownershiip investment is FREE of charges but there are other fees that you have to be aware:
    (a) Appraisal fee, which is $500 if we do the appraisal,
    (b) Processing fee of 3% to transfer money to your lawyer and finally
    (c) Cancelation fee of $900 in case your application is withdrawn within 30 days from the day Ownershiip invested in your property.
    We also cover Ownershiip legal charges but your lawyer may charge an additional fee for the Ownershiip arrangement.
  2. Will you pay my appraisal fee?
    No. Appraisal fees are usually under $500, but, can be significantly more based on location and property-type. There is usually no appraisal cost if your mortgage is insured.
  3. Do you have any processing fees?
    Yes. The processing fee is 3%, which will be deducted when Ownershiip investment is transferred to your lawyer.
  4. Do you have any cancellation fees?
    Yes. If you cancel or your approval is withdrawn within 30 days (grace period) of Ownershiip investment, there is a cancelation fee of $900.
  5. Do you charge a penalty if I exist the Ownershiip investment early?
    No. There is no penalty if you decide to buy back Ownershiip investment. At any point in time beyond the 30 day grace period if you decide to exit the Ownershiip investment, you will have to follow Ownershiip exit terms and conditions.
  6. Do I have to pay legal (aka. mortgage registration) fees?
    Yes. Ownershiip will only cover the legal fees on our side but there may be an additional fee charged by your lawyer.

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REFINANCING (EXIT)

  1. Can I port my Ownershiip investment to a new property? 
    No. You will need to reapply as our investment is based on the property and its prospects.
  2. Can I break my term with Ownershiip any time I want?
    Yes. Breaking or exiting your partnership with Ownershiip will follow the exit terms and conditions.
  3. Is there any restriction on when I can refinance my property?
    No. The only consideration is that within the first 30 day grace period, we apply a cancelation fee of $900.
  4. If I sell my house, can the buyer assume my mortgage?
    No. The new buyer will have to apply for the Ownershiip investment.

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FORECLOSURE (DEFAULT)

  1. If I have a problem with my mortgage, who do I call? 
    In case you have a problem later, you should contact your mortgage lender.
  2. Can I borrow more money to pay towards my mortgage? 
    Yes. However, you will be required to reapply for a new investment against your property.
  3. What happens in case of a mortgage default or foreclosure? 
    In a foreclosure event, the lenders will be paid according to their priority of investment. After the first mortgager lender, Ownershiip has top priority. Ownershiip will be paid for its full investment amount. In some cases, Ownershiip may also purchase the property to save its investment and pay off the lenders.

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If you have any other questions that are not answered here, please contact us directly.