TORONTO--(BUSINESS WIRE)--Key, a Toronto-based real estate tech company with a mission to make real estate a source of prosperity and freedom for everyone, launched today with an innovative co-ownership model that helps people get on the property ladder decades faster. The first-of-its-kind model provides the opportunity to co-own a home to live in and build equity, with an initial small down payment of 2.5 percent of the home’s value.
Key is launching first in Toronto where the average time to save for traditional homeownership is 27 years. Key is making homeownership accessible without needing to qualify for a mortgage or save for the typical 20 percent down payment. The model is a hybrid between renting and owning where monthly payments are comparable to market rent and a portion of the payments serve to increase home equity over time. The investment can grow from day one based on how the real estate appreciates. Every time more is invested, the lower the resident’s monthly rent-equivalent payments will be.
“Homeownership is unattainable for far too many people. Key is fundamentally changing the way real estate works for the better,” said Rob Richards, co-founder and CEO of Key. “We are excited to help our young people, frontline workers, and new citizens start building home equity many years sooner than they thought possible - and without needing to take on massive debt. The three thousand people on our growing waitlist underscore how significant the need is.”
By partnering with property owners, investors, and governments to secure condominium suites in premiere buildings and soon, single-family homes and townhomes, Key aligns real estate investor capital with resident capital to supplement the cost of homeownership, making it more affordable. Investors in Key’s technology platform include Plazacorp, Luge Capital, iNovia Capital, N49P Ventures, the US National Association of Realtors, Ryan Holmes, Red Jar Capital, Moderne Ventures, and more.
“Rising homeownership costs are forcing many aspiring owners to contemplate renting for decades to come,” said Stephen Poloz, chair of Key’s global advisory board and former Governor of the Bank of Canada. “Key enables them to convert that rental into a co-ownership model years sooner, and with less personal risk, than with a conventional mortgage. Key's innovative solution aligns the interests and capital of consumers, asset owners and investors in a way that will bring down systemic housing market risk and create significant social value.”
Key’s patent-pending digital platform makes the experience of co-ownership seamless; to browse available suites, apply for co-ownership, make payments, manage equity, and more, all in one place.
“We have an access and affordability crisis when it comes to owning real estate in major cities,” said Daniel Dubois, co-founder and president of Key. “We’re excited to launch the world’s first all-digital, on-demand homeownership platform to help people enjoy the financial and social benefits of homeownership. Key is more than a business, it is a movement to make an impact on people’s lives and change the way they build their futures.”
To learn more about Key, visit lifeatkey.com.
About Key
Key is a Toronto-based real estate technology company founded in 2018. Key has developed the world’s first all-digital, on-demand homeownership platform. With Key’s patent-pending model, aspiring renters can become homeowners many years sooner. The model is enabled by property owners, investors, and institutional debt fully capitalizing the real estate and allowing owner-residents to contribute as little as 2.5% of the value of their condo suite, without needing to qualify for a mortgage. To learn more, visit lifeatkey.com.
