Ourboro is a new Ontario-based financing company that will contribute between 25 and 75 per cent to a down payment for first-time home buyers in Toronto, Hamilton, London, Kitchener-Waterloo and Guelph, in exchange for an unequal share of the home’s appreciation in value. Since it launched in January 2022, it has receivedInstead of paying Ourboro back in regular payments at a given interest rate, borrowers repay the company's share out of the equity when they sell their home.
"For somebody who has to have 75 per cent of their down payment coming from a third party, they're going to lose 75 per cent of the equity in the home when the time comes and they sell it," Sialtsis told CTV Your Morning on Monday. "But during the time that they own it, they're the ones making all the payments, not this lender."
Sialtsis said homebuyers working with Ourboro also risk being turned down for a mortgage by banks hesitant to take a risk on a property co-owned by another lender. "I currently have clients that are sisters that are looking to buy together, and it'll be a two-family home that they'll live in together," Sialtsis said. "So it'll still be a co-ownership, but at least that's between the family members."
They are banking on the economy tanking and real estate skyrocketing. Vultures.
this is an incredibly predatory practice. paying increasing interest rates and losing the equity in your home? are you able to even use the home equity you build to borrow against in this situation?
totally risky...don't fall for it
Waterbed financing is risky too, but that shouldn't stop you from enjoying a blissful sleep. 3YearLetterman
Next they’ll be financing sandwiches
Wearing a mask while robbing a bank is the best option , experts say .