With the number of friends and family increasingly choosing a shared home buying plan, one Canadian lender is offering a mortgage specifically for that strategy.
Meridian Credit Union, an Ontario-based CU that offers its services through the broker channel, has launched a mortgage allowing individuals to pool resources and attain a mortgage for a shared home.
"With the steady rise in the housing market, many Ontarians are looking for a viable financial solution to help reach the goal of owning a home," says Bill Whyte, Meridian's SVP and Chief Member Experience Officer. "That's why we created the Family and Friends Mortgage."
Up to four people can be placed on title and the mortgage doesn’t require additional costs.
Meridian has also published a guide with recommendations for navigating the tricky transaction, including budgeting, sharing expenses, and creating contingency plans.
A Meridian rep confirmed with MortgageBrokerNews.ca that the product will be offered through the broker channel.
It’s certainly a unique product that will appeal to a very small buyer segment. However, the shared buying strategy appears to be growing in popularity.
Especially in expensive housing markets such as Toronto and Vancouver.
"Particularly in some of the larger markets in Canada, affording that first home or condo is increasingly more challenging," Erica Nielsen, vice-president of home equity finance at the Royal Bank
of Canada, told Canadian Press last year in a profile about friends sharing home ownership.
Recommendations could boost CU offerings