A nighttime skyline scene of the city of Toronto with the CN Tower, large buildings, and boats in the foreground

01.

Your Financial Commitment

Owning a home always involves a financial investment. Thankfully, with Key, it's a significantly smaller initial investment so you can start owning years sooner.

This section of the Owner-Resident Agreement (ORA) summarizes the initial costs associated with your Key Co-Ownership, and explains how the Co-financing Benefit and your Residency Payments work.

A bright and modern condo showing the living room and kitchen area

A. Your Total Initial Cost

To become an with Key, you will need a minimum initial investment of 2.5% of the value of the Suite you want to live in. You're welcome to make a larger initial investment if you'd like to. In exchange for your initial investment, you will receive the following benefits:

  1. (i) The Owner-Resident’s initial Co-Ownership Interest including proportionate application of proportionate use of mortgage debt, if any;
  2. (ii) The exclusive right to occupy the Suite;
  3. (iii) Access to and use of the Building’s Common Areas and Facilities;
  4. (iv) Use of the Key App; and
  5. (v) The opportunity to leverage some debt with the Co-financing Benefit.

ORA Ref: Article 2.1

Owner-Resident

Any primary residents who have signed the Owner-Resident Agreement and have made the minimum initial investment for the Suite.

B. What is the Residency Payment?

The Owner-Resident agrees to pay Key monthly, by automatic pre-authorized debit withdrawal, in advance, on the first day of each month, the Residency Payment as calculated and described below.

ORA Ref: Article 2.2

The Components of Your Residency Payment

Expand icon

Residency Payment

The Residency Payment is the monthly payment that includes the total costs and credits available for your Suite each month.

It is equal to the Rent Equivalent, plus Co-financing Interest, plus Suite Expenses, plus Condo Fees, and the credit for your Ownership Savings.

Residency payment diagram, Rent equivalent plus co-financing interest plus suite expenses plus condo fees minus ownership savings equals to residency payments

ORA Ref: Schedule B.1

Expand icon

Rent Equivalent

The Rent Equivalent is the amount required to cover the financing of the portion of the Suite that you don't currently own.

The Rent Equivalent is determined based on an independent third party audit of current rents for similar Suites, buildings and locations. You benefit from a monthly Ownership Savings determined based on your level of Co-Ownership Interest. So if you own 2.5% of your suite, you benefit from an Ownership Savings of 2.5% of the Rent Equivalent less Equity Boost.

The Rent Equivalent is fixed and guaranteed for three (3) years from the date you move in, so you don't have to worry about increases. At this time, Key will complete a comprehensive review to determine the market rent of a comparable suite with similar features, inclusions and amenities. From this comparable, the Suite Expenses, the Condo Fees, and the Equity Boost will be subtracted to determine the new Rent Equivalent. Key will notify you of the new Rent Equivalent at least sixty (60) days prior to your third anniversary of moving in.

You have the option to increase your Co-Ownership Interest at any time. Every time you do, your Ownership Savings will increase based on your newly increased ownership of your Suite. Since you now own more of your Suite, the additional Ownership Savings will lower your Residency Payment.

ORA Ref: Schedule B.2

ORA Ref: Schedule B.8

Expand icon

Co-financing

As part of your Key Co-Ownership, you receive a Co-financing Benefit that helps amplify your returns.

With the Co-financing Benefit, for every $1 you invest, you will also receive another $1 in leverage. This enables you to build more Home Equity faster. Unlike a mortgage, you don't actually have to take on this debt in order to enjoy the benefit of leverage. The only cost to you for this benefit is a small interest charge monthly.

Co-financing Benefit applies up to when your Home Equity reaches 25% of the Suite value. After this point, it is applied at a lower ratio. You have the option not to participate in the Co-financing Benefit if preferred.

ORA Ref: Article 2.3

ORA Ref: Schedule B.4

Expand icon

Ownership Savings

The Ownership Savings is the savings you enjoy on your Rent Equivalent less Equity Boost based on the portion of your Suite you own (your Co-Ownership Interest). The monthly credit is equal to your Co-Ownership Interest multiplied by the Rent Equivalent less Equity Boost.

Ownership savings diagram, percent of co-ownership interest times rent equivalent less equity boost equals to ownership savings

ORA Ref: Schedule B.3

Expand icon

Condo Fees

The monthly charges assessed by the Condominium Corporation to cover the cost of maintaining the Common Areas and Facilities. These charges are subject to change as explained in the Condominium Rules and Regulations.

ORA Ref: Schedule B.5

Expand icon

Suite Specific Expenses

Since your Suite is your principal residence, you are responsible for the full condominium maintenance fees and property taxes. Expenses that are attributable to the operating costs of the Suite, which include:

  1. 1

    Suite Property Taxes

  2. 2

    Suite Insurance

  3. 3

    Suite Maintenance and Services

Suite Specific Expenses can increase or decrease from time to time based on factors beyond Key's control. We will provide details of any increase or decrease to your Suite Specific Expenses at least thirty (30) days before the change.

ORA Ref: Schedule B.6

Additional Considerations

A gray couch with a white pillow that reads 'There is no place like home'

Equity Boost

Each month that you make a Residency Payment, you will also be growing your equity as Key will add a $50 payment to your Owner-Resident Equity Account.

You will see the increased Ownership Savings of each Equity Boost in the month following the Residency Payment.

ORA Ref: Schedule B.1

A luxury common area with a dark marble bar, dark couch, and flat screen TV on the wall

Special Assessment

A Special Assessment is a one-time charge declared by the Condominium Corporation to pay for unexpected expenses that cannot be covered by operating funds or the reserve fund.

If your Suite is charged a Special Assessment, you agree to pay your share and the Property Owner will pay the remaining balance. The payment calculation is your Co-Ownership Interest multiplied by the Special Assessment amount.

ORA Ref: Schedule B.9

A french bulldog lying on a comfy dog bed surroinded by modern furniture

Additional Charges

Like in any home, as the Owner-Resident, you're responsible for paying for cleaning and maintaining your Suite, utilities for the Suite that are individually metered, and internet + cable (unless already included in the Condo Fees). You are also responsible for your portion of any repairs and maintenance resulting from wear and tear or larger damage, which is calculated based on your Co-Ownership Interest.

ORA Ref: Schedule B.10

Did you know that paying your Residency Payments on-time can improve your credit report?

You agree that Key can report your Residency Payments to the Landlord Credit Bureau for the purpose of positively affecting your credit score.

Learn more about it on the LCB website

ORA Ref: Schedule B.11

C. What is the Co-financing Benefit?

With the Co-financing Benefit, for every $1 you invest, you will also receive another $1 in leverage. This enables you to build more Home Equity faster. Unlike a mortgage, you don't actually have to take on this debt in order to enjoy the benefit of leverage. The only cost to you for this benefit is a small interest charge.

Co-financing Benefit applies up to when your Home Equity reaches 25% of the Suite value. After this point, it is applied at a lower ratio. You have the option not to participate in the Co-financing Benefit if preferred.

ORA Ref: Article 2.3

D. Residency Payment Schedule

You will receive an invoice on the 25th of every month, which gives you time to review and ask any questions about your monthly bill. Your payment will be automatically debited from your connected bank account on the 1st of the following month.

Your invoice will include all of the components of the Residency Payment, Recurring Services, Equity Transactions, along with your payment history.

Understanding Your Invoice and Payment Schedule

Sample invoice and payment schedule. For first billing cycle, invoice date is September 25 and due date and PAD withdrawal is on October 1, repeats for Oct 25 invoice date and Nov 1 due date and PAD withdrawal date for second billing cycle

Invoice Notes

  1. When you move in, your first bill will be prorated so you will only pay for the days you're living there that month. It will be calculated by multiplying the monthly Rent Equivalent by the days occupied as a fraction of the total days in that month.
  2. Rent Equivalent is determined as a PRE-PAY, which means the amount on your invoice covers the Rent Equivalent for the next month.
  3. Most Recurring Services are determined based on the usage value provided by each Service Provider. These amounts are posted as POST-PAY, so the amount on the invoice covers the expenses incurred in the previous month. The exceptions are Parking and Locker, which will be posted as PRE-PAY.

E. Missed Residency Payments

We understand unexpected changes happen that could mean you miss a payment. Here's our approach for managing missed payments.

ORA Ref: Article 7

Missed Payments Policies

Expand icon

Missed Payments Notices and Re-Attempts

Missed payments diagram. With invoice date Janurary 25, if Feburary 1st PAD withdrawal fails with a failed notice, automatic PAD will reattempt a second time on Feburary 3 with failed notice and will reattempt a third time on Feburary 7. A failed third attempt will result in default.

Mistakes happen. We get it. So, if you miss a payment, we will immediately send you an email or an alert from the Key App so you'll know the payment was missed and arrange for the outstanding amount to be available in your funding account.

The system will then automatically re-attempt to debit the owed amount on the 5th and 10th business day of the month. If the second re-attempt on the 10th business day fails, you’ll receive a Notice of Residency Payment Default.

To recover the costs incurred for missed or late payments, the following fees will be charged. These fees are subject to change.

(a) A $5 fee for failed automated withdrawal attempts on each of the 5th and 10th business days of the month.
(b) A $50 fee for not curing the Residency Payment Default by the next billing cycle which occurs on the 25th of the month.

ORA Ref: Article 7.5

ORA Ref: Article 7.6

Expand icon

Notice of Residency Payment Default

The Notice of Residency Payment Default will outline the issue and amount owed to Key. You are required to complete one of the following within ten (10) days:

(i) Pay the outstanding amount, or
(ii) Discuss the situation with us and make payment arrangements that are satisfactory to Key.

We believe your Co-Ownership Interest should provide security in times of income disruption, which is why Key will not take any action to terminate this Agreement or interrupt your occupancy of the Suite or your rights as long as you agree to pay the outstanding amount in a way that's acceptable to Key.

ORA Ref: Article 7.2

Expand icon

Multiple Notices

As long as you make the payment in the manner detailed in the ORA, our Agreement will continue.

If you fail to address the issue of not making your Residency Payment, Key will reduce your Co-Ownership Interest by the outstanding amount owed plus any reasonable costs Key incurred in connection with your missed payment.

If you've received more than three (3) Notices of Residency Payment Default during the term of this Agreement, then with the delivery of the fourth Notice Key is entitled to send you a Notice of Termination.

ORA Ref: Article 7.5

Legal Review of the Owner-Resident Agreement

Seeking independent legal advice can provide added confidence in your decision.

The Owner-Resident Agreement is an important contract and we want to make sure you're comfortable with the commitment you're making. That's why we recommend Owner-Residents seek independent legal advice before signing, so you have added confidence in your decision to become an Owner-Resident with Key.

Independent from the Residential Tenancies Act (Ontario)

Since you are an Owner-Resident and no longer a renter, you agree that we are both bound by the Owner-Resident Agreement and not any aspect of the Residential Tenancies Act (Ontario). Please refer to ORA Article 3.2 for more details.

Two women looking at a laptop screen in an office setting

Get In Touch

We're here to help

Like any good neighbour, we're always happy to help. So, if you have any questions or want to chat about the ORA, we're only a click away.