In a recent survey of 2,000 Canadians, 14% of those surveyed stated they feel locked out of ever owning a home because they are self-employed. Aspiring homeowners may be putting their dreams of homeownership on hold due to the difficult nature of getting approved for a mortgage.

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Qualifying for a mortgage when you’re self-employed

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If you’re a freelancer, entrepreneur or contract worker, you likely know how difficult it can be to qualify for a mortgage when you’re self-employed . 

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Even though Statistics Canada tells us that those who are self-employed have a higher medium net worth and income than paid employees, the reality is that without a stable income, lenders often see you as a higher risk, making them less likely to provide you with a loan. 

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We know that homeownership provides not only financial benefits, such as building home equity, but social benefits as well, such as security, pride and comfort. So how can entrepreneurs prosper from these benefits if the restrictive nature of the mortgage model does not serve them. 

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Homeownership without a mortgage

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Innovative models are entering the real estate market to help reduce the barriers to ownership and allow more Canadians to start owning. And Key’s co-ownership model was created to do exactly that.

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Key’s model removes the two largest barriers to homeownership, a large down payment and the need to qualify for a mortgage. With co-ownership, you can start owning for as little as 2.5% of your suite's value (around $5-15k for most!) and no mortgage. 

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No required mortgage is one of the best parts of Key’s model and is what allows for its incredible flexibility.  As an Owner-Resident with Key, after your initial term, you have the option to purchase your home the traditional way and take on a mortgage, but there’s no obligation to do so. You can choose to continue co-owning,  either way you’re building home equity. 

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Since launching our co-ownership model in 2021, we’ve welcomed over 50 Owner-Residents into Key homes. Many of our Owner-Residents are entrepreneurs and gig workers who appreciate the innovative approach to real estate ownership that doesn’t require a mortgage. You can learn more about the Torontonians who have embraced Key’s co-ownership model here. 

If you’re an entrepreneur or someone who is self-employed and struggling to get into the market, learn more about what it means to co-own your home and if co-owning makes sense for you.

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