Shared equity model helps young professional become a homeowner
Zac Trolley owned a condominium in Calgary but sold it and took on student loans to study engineering. Upon graduating and starting an entry level job, he found that housing prices had risen considerably, and it was now more difficult to find suitable housing on his own.
“I was starting at the bottom of the ranks. It was challenging to find a place I could afford,” Trolley said. “I was living with my parents ’cause I didn’t want to move three or four times looking for the right place.”
Zac wanted to be a homeowner again, but it was going to be difficult with high rents and student debt. Then he learned about McPherson Place, a new condominium development in downtown Calgary, offered by INHOUSE (non-profit housing society), New Urban (housing developer) and the City of Calgary, with assistance from CMHC, in the form of an interest-free Proposal Development Funding loan.
INHOUSE helps to make homeownership possible for qualified buyers through a shared equity model, by providing up to 35 per cent of the value of the condominium as a loan. CMHC’s Mortgage Loan Insurance Flexibilities allowed the lender to recognize the value of the loan as a down payment, thereby permitting the homeowners to take on a mortgage for the remaining value of the property. At McPherson Place, more than 100 of the 160 units are offered under INHOUSE’s shared equity model, and the remaining units are owned by the City of Calgary and offered as rental units.
Featuring an urban village concept, the condominiums are close to amenities, pathways and public transit.
Since Zac’s job requires some travel, he finds that the central location of McPherson Place makes his time and money go further. He is back on track with his own place and a new career. “It’s given me the freedom to start living the life I want to live.”