Still Have Question?
Your Path to Homeownership Starts Here –
Have Questions? We’ve Got Answers
Homeleta is on a mission to transform housing affordability and make homeownership more accessible. By tackling rental challenges, we create opportunities for both resident-owners and investors to build wealth through real estate. Our model is simple: a 5% down payment and a commitment to making the property your primary residence. Because at the end of the day, home isn’t just a place—it’s where life happens.
General
Homeleta makes it easier for individuals, and families, to own their dream home and build wealth in an affordable and permissible way by reducing the burden of down payment and eliminating interest payments.
Homeleta raises capital from investors seeking real estate opportunities and partners with homebuyers and affordable housing investors to facilitate homeownership. Homebuyers contribute a portion of the down payment, while Homeleta provides the remaining funds.
Homeleta invests up to 15% of the purchase price or $375,000, whichever is lower, alongside the resident-owner to meet the down payment requirement. The total down payment is capped at 20% for residential properties. Resident-owners can contribute between 5% and 15% of the home’s purchase price, with Homeleta covering the remainder—up to a maximum of $375,000—to reach the 20% down payment threshold.
By co-investing in the down payment, both the resident-owner and investors hold an equity stake in the home. No interest payments are required, and the resident-owner is not obligated to repay the investment directly. Instead, when the property is sold, the proceeds are distributed based on each party’s ownership percentage. Both the resident-owner and investors benefit from appreciation and share the risk of depreciation.
For example, if the resident-owner contributes 40% and Homeleta funds 60% of the down payment, the resident-owner retains a 40% equity stake in the home until they choose to buy out Homeleta’s share.
Homeleta commits capital for a minimum of five years and a maximum of 15 years per property. The resident-owner can exit the partnership by selling the home, refinancing, or securing alternative capital within the investment period.
Co-ownership, also known as shared ownership, is when two or more parties come together to buy and own a property. Depending on the arrangement, some co-owners may live in the home while others invest without occupying it. The rights and responsibilities of each party are clearly outlined in a co-ownership agreement, which is signed before or at the time of purchase. While co-ownership shares similarities with traditional homeownership, it also offers unique advantages, especially when approached professionally.
In the traditional real estate market, you either rent (owning 0% of your home) or buy outright (owning 100%). Co-ownership offers a smarter, more flexible alternative, enabling buyers to enter the housing market without the need to purchase a home entirely on their own.
- First-time buyers looking for an affordable way to enter the market
- Buyers with savings who prefer to diversify their investments rather than tie up all their funds in a home
- Homebuyers seeking financial flexibility while still building equity and long-term wealth
By partnering with others, buyers can co-invest, share expenses, and enjoy the advantages of homeownership – without the full financial burden of going it alone.
Co-ownership is a flexible approach that can involve family members, friends, or even independent investors. Some common examples include:
- Siblings buying a home together and sharing living space
- Friends purchasing a duplex, each living in a separate unit
- An investor partnering with a homebuyer, where one lives in the property and the other holds an equity stake
At Homeleta, we make co-ownership simple, transparent, and structured – helping you achieve homeownership on your terms.
Professional Co-Ownership is a unique form of property co-ownership where the partnership is between an individual and a corporation, rather than multiple individuals. Homeleta specializes in Professional Co-Ownership. We contribute to the down payment of your home in exchange for a share of the equity in the property. Unlike traditional co-ownership arrangements, our contribution is a co-investment, not a loan. This means no interest – just monthly rental payments and shared growth in the property’s value.
Professional Co-Ownership offers distinct advantages over traditional co-ownership between individuals. As a corporation, we bring a non-emotional, investor-focused approach. This means the property is entirely yours to enjoy, live in, and call home. We enter the agreement with the understanding that our involvement is purely financial – we don’t have a personal stake in the property and won’t step foot inside.
In our professional co-ownership model, we act as an investor. We benefit when the property appreciates, just like you. If the home’s value decreases, we share in those losses as well. Our partnership also provides the stability and security of a professionally-reviewed agreement. Homeleta’s co-ownership contracts have been thoroughly vetted by our legal team, stakeholders, and industry experts. Each agreement is also reviewed by your independent legal advisors, ensuring that every aspect is clearly understood.
In contrast, when individuals create their own co-ownership agreements, there’s a higher risk of overlooked details, which could lead to disputes in the future. With Homeleta, you can feel confident knowing everything is handled professionally and transparently.
A co-ownership agreement is a legally binding document that outlines the rights, responsibilities, and obligations of all parties who jointly own a property. It helps ensure clarity and protection for each co-owner, particularly in the event of a dispute. Typically, this agreement is signed before or at the time of purchase.
A well-structured co-ownership agreement ensures clarity, security, and a smooth partnership by:
- Protecting the interests of all co-owners
- Defining clear roles, responsibilities, and expectations
- Minimizing misunderstandings and reducing the risk of disputes
- Providing a structured framework for resolving conflicts
Without a formal agreement, co-owners may have different assumptions about their rights and obligations, which can lead to legal, financial, and emotional challenges in the future.
Co-ownership agreements typically define key aspects of property ownership, such as:
- Ownership structure (percentage of ownership for each party)
- Decision-making and dispute resolution processes
- Occupancy rules and responsibilities
- Conditions for selling or transferring ownership interest
- Guidelines for a full property sale
A clear agreement provides peace of mind and ensures that all co-owners are on the same page throughout the homeownership journey.
Homeleta raises capital from real estate investors who prefer to be your partner, not your landlord. We align investor goals with yours, fostering collaboration instead of competition—so they work with you, not against you.
Homeleta provides equity-based down payment assistance, co-owning the property with you rather than offering a loan. When you purchase a home with Homeleta, you simply pay your monthly rent—there are no interest payments, and no obligation to repay Homeleta directly. Instead, Homeleta recoups its investment when the property is sold, refinanced, or through a cash payout.
You can partner with Homeleta for up to 15 years. At any time before the 15-year mark, you can exit the partnership by selling the home, refinancing, or securing alternative funding. You won’t need to make out-of-pocket payments to investors, as their returns are tied to the property’s appreciation.
To purchase a home, you’ll need a minimum of 5% of the purchase price for your down payment. Additionally, you should budget approximately 2% of the purchase price for closing costs, which include legal fees, a portion of the land transfer tax, and facilitation fees.
As the resident-owner and co-investor, you are responsible for covering all closing costs when purchasing and selling the home, except for a portion of the Land Transfer Tax (LTT) at the time of purchase. Since LTT typically represents the largest share of closing costs, Homeleta shares this expense with you, making co-ownership even more financially beneficial. The LTT is split proportionally based on each party’s equity contribution. For example, if the equity split is 60-40, Homeleta would cover 60% of the LTT, while you would be responsible for the remaining 40%.
Our revenue comes from management fees and equity appreciation in the homes we co-buy. We partner with homebuyers to invest in properties that have been carefully analyzed and are projected to appreciate over time. When the home is sold, Homeleta receives its proportional share of the equity. Both Homeleta and the resident-owner benefit from property appreciation and share the risk if the home’s value declines.
Our Co-Ownership and Partnership Agreement safeguards both parties, ensuring that Homeleta cannot sell the property or reclaim your ownership share unless the resident-owner materially defaults on the agreement. This means your homeownership is fully protected, even if Homeleta were to go out of business. Additionally, the legal entity that co-owns the home with you is separate from Homeleta itself. This structure ensures that if Homeleta ceases operations, the co-ownership arrangement remains intact, and your rights as a resident-owner remain secure.
To get started checking your eligibility by clicking here
Currently, we operate in Ontario, with plans for expansion to serve all of Canada and the United States
Buying
For the average first-time homebuyer in urban Canada, it takes approximately 27 years just to save for the recommended 20% down payment. Purchasing a million-dollar home alone demands a substantial amount of cash upfront—both a significant financial commitment and a major risk concentrated in one asset.
What if you could avoid the stress of excessive interest payments? Homeleta offers you the peace of mind that comes with avoiding unnecessary financial burdens, letting you sleep easier at night.
Yes! You have the option to either hold the title to the home in your name as the sole owner with exclusive occupancy rights or authorize the partnership to hold the title on your behalf. In either case, you and the partnership will enter into a co-ownership agreement, which grants the partnership a share of the property’s appreciation in value.
As a co-owner with the investor in a limited partnership, you can live in the home and no longer need to worry about rent payments to a landlord. Instead, you become the landlord and make monthly contributions toward reducing the principal balance owed to the partnership.
If you decide to move, you can sell your home with just 90 days’ notice to the partnership. If you move after the first year, you’ll receive your original investment back, plus your share of any increase in the property’s value during your time there. However, if you need to move within the first year, a 5-10% penalty will apply, depending on your location, as a contribution toward principal reduction for the partnership.
Yes, resident-owners have the option to purchase the property and buy out the investors after the third year. If the buyout occurs before the third year, the terms can be negotiated between Homeleta and the co-owner. Alternatively, you may choose to remain a co-owner. In either scenario, you’ll be steadily building equity in your home.
Homeleta can be paid out upon the sale, refinance, or through other available sources of funds. The payout will include Homeleta’s original equity contribution, plus or minus its share of the property’s appreciation or depreciation.
Let’s say we co-invest in a property worth $1,000,000, requiring a 20% down payment of $200,000. You contribute 5% of the purchase price, or $50,000, and Homeleta contributes the remaining 15%, or $150,000. Since Homeleta funds 75% of the total down payment ($150,000 of $200,000), and you contribute 25% ($50,000 of $200,000), the ownership equity in the property is split 75% for Homeleta and 25% for you.
Ownership shares in the property are directly tied to the initial down payment contributions. When purchasing a home with Homeleta, you can choose to invest anywhere from 5% to 15% of the home’s value, and Homeleta will cover the remaining amount to ensure the total down payment reaches 20%. This contribution ratio directly translates to the percentage of equity we each hold in any future appreciation of the property.
No, our policies ensure that the housing solutions we support are not used as secondary income properties by individuals seeking to buy and rent out. Everyone involved in a Homeleta-supported partnership is an Owner-Resident, just like you.
Homeleta is dedicated to helping resident-owners who have the income to support their housing costs but may lack the savings for a full down payment on their desired home. Our goal is to make homeownership more accessible by providing an affordable and feasible path to acquiring a home.
To qualify for the Homeleta plan, a Resident-Owner must meet the following criteria:
- Be purchasing the property as their primary residence
- Plan to close on the property within 90 days
- Ideally, intend to own the property for 3 to 15 years
- Be able to contribute at least 5% of the property’s value towards the down payment and closing costs at the time of purchase
- Successfully complete our application process and be pre-approved by a member of our Residential Operating Team
Get Started and speak with a member of our team.
You can co-buy within 60 to 90 days, depending largely on how quickly you find a suitable and qualified property
Yes, Homeleta can enter into co-ownership agreements with multiple individuals. This allows co-ownership between friends or with any other parties who are not partners or spouses of the buyer.
Homeleta partners in the purchase of townhouses, semi-detached homes, single-family detached homes, as well as pre-construction and fixer-upper properties. Currently, we are not able to invest in homes that are part of a co-operative.
Our program is designed for resident homebuyers purchasing a primary residence. We do not permit fixed-term or formal lease agreements. However, legally finished basements may be rented out.
Financing
Homeleta offers a unique, non-interest bearing mortgage option, where Homeleta provides the full funding for the home purchase. Unlike traditional mortgages, there is no interest charged on the loan amount, which helps make homeownership more affordable. Instead of paying interest, the resident-owner makes rental payments to cover the cost of capital invested by Homeleta.
The rental payments are structured to reflect the cost of capital, helping to ensure Homeleta’s investment is maintained while providing the resident-owner with a manageable path to homeownership. These payments are not applied to an interest-bearing loan but rather are designed to cover Homeleta’s initial capital outlay over time. This structure benefits both parties: it allows the resident-owner to avoid traditional interest payments while providing Homeleta with a return on its capital investment through the rental payments.
No, you will not need to qualify for a traditional mortgage loan to complete the purchase of the property. Homeleta’s contribution to the down payment, along with securing the necessary funding, helps make homeownership more accessible. However, co-owners must still meet Homeleta’s requirements, including income verification, credit score, and debt-to-income ratio, in order to be approved for the rental payment arrangement. Once you qualify, Homeleta’s share of the down payment will be combined with your contribution to complete the 20% down payment, and the remaining 80% will be financed by Homeleta.
No, we do not run any credit checks; however, we do require a copy of your credit report. When applying, we ask for your credit score, along with details of your monthly debt payments and household income, to gain a general understanding of your debt-carrying capacity.
No, there is no traditional mortgage payment required. Instead, you will make monthly rental payments. These rental payments are structured similarly to a lease agreement and are based on the terms of your partnership with Homeleta. The payments are designed to cover the costs of Homeleta cost of capital investment in the property. As a resident-owner, your monthly payment will contribute to the overall cost of homeownership without the need for a mortgage loan. The rental payments will continue throughout the duration of the agreement, and at the end of the term, you may have the option to buy out Homeleta’s share or transition to another arrangement.
Homeleta works with preferred brokerages that we currently refer to homebuyers who do not have a signed agency representation agreement with an agent. If you already have a signed agency representation agreement, please indicate this on your application and provide a copy when requested. Our team has partnered with a select group of real estate and mortgage brokerages, and through a third-party licensed real estate and mortgage broker, you will be connected with these trusted partners as part of our application and onboarding process. Our brokerage network offers competitive services to help guide you through the home-buying process.
The Resident-Owner, who has full enjoyment of the property, is responsible for its proper maintenance. While Homeleta does not benefit from living in the property nor charges rent for its use, as co-owners, we both have a vested interest in maintaining the home’s value and protecting our investments. To support this, we offer a complimentary home maintenance inspection service to help identify potential issues before they become problems and ensure that the home is functioning properly.
You are free to make minor changes and carry out renovations to the property at your discretion. For major updates, we ask that you inform us in advance. Homeleta may contribute to significant upgrades, such as finishing a basement for rental purposes, and in such cases, you may qualify for a Renovation Credit. This credit means that if the renovation increases the home’s value at the time of sale, you could receive a reimbursement for some or all of the renovation costs.
- Equity Ownership vs. Renting:
With Homeleta, your downpayment and monthly payments allows you to earn equity in the property, while rent payments go solely to the landlord without building any ownership.
- Flexibility for Renovations:
Homeleta allows you to make renovations and improvements, increasing your property’s value. Renters typically cannot make such changes.
- Monthly Payments vs. Rent Payments:
Homeleta’s monthly payments can contribute to your equity, whereas rent payments leave you without ownership once the lease ends.
- Long-Term Investment:
Homeleta allows you to build long-term equity and offers options like buying out Homeleta’s share. Renting offers no opportunity for ownership or investment.
- Maintenance Responsibility:
As a Homeleta resident-owner, you maintain the property, with support through a complimentary inspection. Renters typically don’t handle maintenance.
- Renovation Credit:
Homeleta offers a Renovation Credit for improvements that increase home value, allowing you to recover some renovation costs. Renters cannot recoup any such costs.
Selling
The proceeds will be allocated as follows: First, they will be used to repay Homeleta’s interest-free principal investment, excluding the down payment made by the lawyer managing the sale transaction’s closing. Next, the total principal payments made by the Co-owner to reduce the principal will be reimbursed to the Co-owner. Finally, any remaining proceeds, including the appreciation in the home’s value, will be distributed in proportion to the equity invested by all parties, including the resident-owner and Homeleta.
At the conclusion of the fifteen-year period, if you decide that you are unwilling to sell the property, Homeleta will explore alternative options to accommodate your desire to retain ownership. These options may include refinancing the property, where you could secure a new capital to pay off Homeleta’s share of the equity. Alternatively, Homeleta can assist you in developing a structured plan to buy out our share over a specified period, allowing you to gradually acquire full ownership of the property. We will work closely with you to determine the best solution based on your financial situation and goals, ensuring a smooth transition and continued homeownership without the need to sell the property.
If the property decreases in value and you still choose to sell, Homeleta will remain your partner throughout the process. The steps for distributing the sale proceeds will follow the same structure as if the property had increased in value.
First, Homeleta will be repaid for any investment beyond its initial down payment, followed by the payment of any third-party closing costs. If there are remaining sale proceeds, these will be used to return the Co-owner’s principal payments. Finally, any remaining proceeds will be shared between you and Homeleta based on the equity contribution percentages.
We understand that real estate investments carry risks. If the property depreciates in value, we will accept the loss on our investment, and you will not owe us anything. However, please note that closing costs at the time of sale will be your responsibility. An adjustment will be made to ensure that your portion of the sale proceeds covers these closing costs.
You will never be forced to sell your property unless there is a significant breach of the terms and conditions specified in the Co-Ownership Agreement. Any actions that would be considered a gross violation are clearly outlined in the agreement, and we will review these details with you thoroughly before we proceed with the co-purchase. It is never Homeleta’s intention to force a homebuyer out of their home. However, we must have guidelines in place to protect our investment, just as we have measures to safeguard your interests.
Homeleta’s goal is to support co-owners in enjoying their home for as long as they wish to stay. In situations of financial difficulty, we are dedicated to collaborating with our co-owners to find solutions that benefit and protect all parties involved.
Co-owners have the option to make an offer to buy out Homeleta’s share in the property at any point during our 15-year agreement. The decision to accept, decline, or negotiate such an offer will depend on the fair market value of the home at the time. Homeleta has established clear guidelines to determine when an offer can be considered. These guidelines will be provided to you well in advance of co-purchasing the property. We recommend considering this option after three years of co-ownership to ensure both parties have had sufficient time to assess the property and market conditions.
Yes, our co-owners have the freedom to sell the home at any time during the 15-year term. If you choose to move, you can do so by selling your home, provided that you give the partnership a 90-day notice. If you decide to move after the first year, you will receive a return of your investment, plus your share of any increase in the property’s value during your time living there. However, if you need to move within the first year, a penalty of 5-10% may apply, depending on your specific circumstances.