Shared equity lets you buy a home with less of your own money: a partner contributes part of the down payment and, instead of charging interest, takes a share of the home’s value when it is sold. This page explains how it works, what happened to the federal program, which options are open today, and how a sale is split. It is part of WealthNorth’s refinancing and home equity guide.
How shared equity works
| Step | What happens |
|---|---|
| 1. Apply | You apply to the partner and get a mortgage pre-approval |
| 2. Buy | The partner’s contribution and your savings together make up the down payment; you take the mortgage |
| 3. Live in the home | You pay the mortgage and maintain the home |
| 4. Exit | You sell, the agreement reaches its end date, or you buy the partner out |
| 5. Settle | The partner receives its share of the home’s value at that time, which may be more or less than it put in |
Because the partner’s money isn’t a loan, there are no interest payments on it. The cost is the share of any increase in the home’s value that goes to the partner.
The federal First-Time Home Buyer Incentive (closed)
CMHC says the First-Time Home Buyer Incentive is no longer accepting applications: the deadline for new submissions was March 21, 2024, and no new approvals were granted after March 31, 2024 (CMHC, First-Time Home Buyer Incentive). For buyers who received it, CMHC describes it this way:
- it was a shared-equity mortgage with the Government of Canada, which offered 5 or 10% of the home’s purchase price toward a down payment;
- the government shares in both the upside and downside of the property value, up to a maximum gain or loss of 8% per year (not compounded) on the Incentive amount;
- it must be repaid in full after 25 years or when the property is sold, whichever comes first, and can be repaid earlier without a prepayment penalty;
- porting the mortgage, or a partial release of security, triggers repayment.
Options open today
Ourboro (private co-investor)
Ourboro describes its program on its own site (how it works, as of October 1, 2026):
| Feature | What Ourboro says |
|---|---|
| Contribution | Between 5% and 15% of the purchase price, up to a maximum of $250,000, to help you reach a 20% down payment |
| Your savings | At least 5% saved for a down payment |
| Where | Homes in the Greater Toronto Area, or in one of our investment regions |
| Cost | Not a loan, so no interest or monthly payments |
| Ownership share | The percentage of the down payment each side contributes becomes its percentage of equity, which sets how appreciation is shared at sale |
| At sale | Your mortgage principal payments come out of the proceeds and are set aside for you first; the rest is split by ownership share |
| If the value falls | Ourboro says it accepts the loss on its investment and you won’t owe it anything |
| Length | Up to 30 years; you can sell or offer to buy its share at any time. Ourboro says its model is ideal for those looking to sell within the first 10 years |
Reaching a 20% down payment matters for insurance. With less than 20% down you need mortgage loan insurance.
Attainable Homes Calgary (municipal, non-market)
Attainable Homes Calgary is a non-profit, wholly owned subsidiary of The City of Calgary. Its homeownership program sells homes through a permanently affordable, non-market model at below-market prices to eligible buyers, who can buy with a $2,000 down payment; eligibility depends on income (Attainable Homes Calgary, as of October 1, 2026).
Provincial and municipal programs
Other provinces and cities run down payment assistance and affordable ownership programs, and they can open, change and close at any time. First-time home buyer programs lists the current ones; your provincial housing agency has the eligibility rules.
Worked example: how a sale is split
This example follows the split Ourboro describes, with illustrative numbers. It leaves out selling costs and fees, and the agreement itself governs the real split.
A $600,000 home is bought with a 20% down payment: the buyer puts in $30,000 (5%) and the partner $90,000 (15%), so the buyer’s ownership share is 25% and the partner’s 75%. The mortgage is $480,000. By the time of sale the buyer has repaid $40,000 of principal. The amount split by ownership share is the sale price minus the original mortgage (the principal repaid goes to the buyer first).
| Sale price | Amount split | Buyer receives | Partner receives |
|---|---|---|---|
| $700,000 | $220,000 | $40,000 + $55,000 = $95,000 | $165,000 |
| $600,000 | $120,000 | $40,000 + $30,000 = $70,000 | $90,000 |
| $540,000 | $60,000 | $40,000 + $15,000 = $55,000 | $45,000 |
At $700,000 the home gained $100,000, and the partner’s 75% share of the down payment gives it $75,000 of that gain. At $540,000 the partner gets back $45,000 of its $90,000, and the buyer $15,000 of the $30,000 put in.
The partner’s share follows its share of the down payment, not its share of the purchase price, so a partner that put in most of the down payment takes most of any gain. Comparing the split with a bigger mortgage, or with waiting to save more, shows what the arrangement costs in each case.
Trade-offs
| Advantages | Disadvantages |
|---|---|
| A smaller amount of your own savings gets you into a home | You give up part of any gain in the home’s value |
| No interest or monthly payments on the partner’s money | The partner’s share of a gain follows its share of the down payment, so it can be large next to what it put in |
| The partner may share a loss if values fall | The programs on this page are limited to certain regions and buyers |
| A larger combined down payment can mean a smaller mortgage, or no mortgage insurance | You need to qualify for the mortgage on your own income |
Questions to ask before signing
| Question | Why it matters |
|---|---|
| How is the partner’s share calculated: on the home’s value, or on the down payment? | It sets how much of any gain the partner takes |
| What happens if the home’s value falls? | Whether the partner shares the loss |
| When must the arrangement end, and can I buy the partner out early? | Your flexibility to stay, sell or refinance |
| How is the home valued at buyout, and who pays for the appraisal? | The buyout price depends on it |
| Do renovations need approval, and is their value credited to me? | Your control over the home |
| Can I refinance or add a HELOC? | Your access to your own equity later |
| Can I rent the home out? | Whether you must live in the home |
| Are there fees? | The full cost of the arrangement |
A real estate lawyer can review the agreement before you sign.
Alternatives
- Saving in an FHSA or using the Home Buyers’ Plan. Tax-sheltered ways to build a down payment without giving up equity; the FHSA guide and the Home Buyers’ Plan guide cover the limits.
- A smaller down payment with mortgage insurance. The minimum down payment is 5% of the first $500,000 and 10% of the rest for homes under $1.5 million, and 20% at $1.5 million or more. With less than 20% down, a bank loan needs default insurance under the limit described above, which adds a premium; the CMHC insurance calculator estimates it.
- A family gift or co-buying. Both keep the equity within the family or the co-owners, with their own agreements to work out.
Related pages
Sources
The figures and rules on this page come from these sources, last checked against them between September 25, 2026 and October 1, 2026. How we check facts.
- Attainable Homes Calgary: Attainable Homes Calgary : Homeownership & Rentals in Calgary.
- CMHC: First-Time Home Buyer Incentive
- Financial Consumer Agency of Canada: How much you need for a down payment
- OSFI: Residential mortgage underwriting practices and procedures
- Ourboro: How It Works