What is home equity sharing in Canada?

Home equity sharing is an arrangement where a company or investor contributes a portion of your down payment in exchange for a share of your homes future appreciation (or depreciation). You own the home and make normal mortgage payments, but when you sell, refinance, or at an agreed-upon date, you share the gain or loss with the equity partner.

How does Ourboro work?

Ourboro provides up to $250,000 toward your home purchase in exchange for a share of the homes future appreciation. You maintain full ownership and decision-making. When you sell (or at the end of the agreement term), Ourboro receives their initial contribution plus their agreed share of any appreciation. If the home depreciates, Ourboro shares in the loss.

Is home equity sharing worth it?

It can be, depending on your situation. Equity sharing helps you buy sooner with a smaller personal down payment and may avoid CMHC insurance. The trade-off is giving up a portion of future appreciation. If home prices rise significantly, the equity partner may receive more than you would have paid in interest on a larger mortgage. If prices are flat or decline, equity sharing is advantageous because the partner absorbs part of the loss.

What happened to the First-Time Home Buyer Incentive?

The federal First-Time Home Buyer Incentive (shared equity mortgage with CMHC) was discontinued in March 2024 due to low uptake. The program offered 5%–10% of the home price as a shared equity contribution, but was limited by a maximum qualifying home price of $722,000 (higher in Toronto, Vancouver, and Victoria), which excluded most of the markets where buyers needed help most.

Can I buy out my equity sharing partner?

Yes. Most equity sharing agreements allow a buyout — typically through refinancing your mortgage for a higher amount to pay out the equity partner share. The buyout amount is the partners initial contribution plus their share of appreciation at the time of buyout. Some agreements have minimum holding periods or early buyout fees.

Home Equity Sharing Programs in Canada: How They Work (2026)

Home equity sharing programs let you buy a home with less of your own money. An investor or company puts up a portion of the down payment, and in exchange, they receive a share of the home’s future value change. These programs are relatively new in Canada and are an alternative to traditional mortgages, CMHC insurance, or the discontinued federal shared equity program.

Step	What Happens
1. Apply	You apply to an equity sharing company and qualify based on income, credit, and property
2. Partnership	The company contributes funds toward your purchase (typically 5%–15% of the home price)
3. You buy the home	You own the home, live in it, maintain it, and make all mortgage payments
4. Exit event	When you sell, refinance, or reach the agreement end date, you settle with the partner
5. Share the gain (or loss)	The equity partner receives their original contribution plus their share of appreciation

Factor	100% Your Down Payment	With Equity Sharing Partner
Home price	$600,000	$600,000
Your down payment	$60,000 (10%)	$30,000 (5%)
Equity partner contribution	$0	$30,000 (5%)
Mortgage amount	$540,000	$540,000
CMHC insurance	$16,740 (3.1%)	Potentially avoided if combined = 10%+
Monthly payment	~$2,850	~$2,850
If home appreciates 20% to $720,000	Your equity: $180,000	Your equity: ~$150,000 (partner takes ~$30,000 + share of gain)

The core trade-off: You buy sooner with less cash, but give up some future upside.

Ourboro

Feature	Details
Contribution	Up to $250,000 toward your home purchase
What they receive	Share of future appreciation
Property types	Residential — detached, semi, townhouse, condo
Location	Currently focused on the Greater Toronto Area
Agreement term	Up to 15 years
Buyout allowed	Yes — through refinancing or cash payment
Monthly cost	No monthly fees to the equity partner
Maintenance	Your responsibility (as the homeowner)

Key Living

Feature	Details
Contribution	Varies based on property and applicant profile
What they receive	Share of future appreciation
Focus	Helping buyers who are close to qualifying but need down payment help
Location	Select Canadian markets

Comparison with the discontinued federal program

Feature	First-Time Home Buyer Incentive (Ended 2024)	Private Equity Sharing (Ourboro/Key)
Provider	CMHC (federal government)	Private companies
Contribution	5%–10% of home price	Varies (up to $250K)
Price cap	$722,000 (up to $950K in select cities)	Market-based, higher limits
Repayment	Return contribution + share of gain after 25 years or on sale	Similar — return + share of gain
Status	Discontinued (March 2024)	Active

Situation	Why It Helps
You have steady income but limited savings	Access the market sooner instead of waiting years to save
Home prices are rising faster than you can save	Missing out on appreciation costs more than sharing it
You need to avoid CMHC insurance	Combined down payment may reach 20%, eliminating the insurance premium
You’re buying in an expensive market	The gap between your savings and the required down payment is large
You have a short timeline	Job relocation or family needs require buying soon

Situation	Why
You can make the down payment yourself	No need to share appreciation
Home prices are expected to decline	The partner shares in losses, which is an advantage — but you may be better off waiting
You plan to hold the home for 20+ years	The cost of shared appreciation compounds over time
You value maximizing wealth accumulation	Every dollar of appreciation you share is a dollar you don’t keep
The agreement terms are unclear	Never enter an equity sharing agreement without full legal review

Scenario: $600,000 home, 5% personal down payment + 5% equity partner

CMHC route (5% down, no equity partner):

Cost	Amount
CMHC premium (4.0% on $570K mortgage)	$22,800
You keep 100% of appreciation	—

Equity sharing route (5% personal + 5% partner = 10% combined):

Cost	Amount
CMHC premium (3.1% on $540K mortgage)	$16,740
Equity partner’s share of appreciation after 5 years (home up 15%)	~$13,500 + $30,000 return = $43,500
Net cost vs CMHC	Higher if appreciation is strong

The breakpoint: If the home appreciates significantly (15%+ over 5 years), CMHC insurance is often the cheaper option. If appreciation is modest (under 10%), equity sharing can be cheaper because the partner’s share of the smaller gain is less than the CMHC premium you avoided.

Legal considerations

Factor	Details
Legal review	Essential — have a real estate lawyer review the equity sharing agreement before signing
Title registration	Equity sharing may or may not be registered on title — understand how the partner’s interest is secured
Mortgage lender approval	Your lender must agree to the equity sharing arrangement; not all lenders will
Renovation rights	Confirm whether you can renovate freely and how renovation value is handled
Buyout terms	Understand the exact formula for buying out the partner at any point
Default provisions	What happens if you miss mortgage payments or the partner calls the agreement
Tax implications	The equity partner’s share is typically not a taxable event for you (consult a tax advisor)

Home Equity Sharing Programs in Canada: How They Work (2026)

How equity sharing works

Equity sharing vs traditional down payment

Canadian equity sharing companies

Ourboro

Key Living

Comparison with the discontinued federal program

When equity sharing makes sense

When equity sharing doesn’t make sense

The math: When does equity sharing cost more than CMHC insurance?

Scenario: $600,000 home, 5% personal down payment + 5% equity partner

Legal considerations

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