Managing Your Suite Co-Ownership

Co-Ownership Interest is based on the investments you've made in your Suite, which determine the portion of the Suite that you co-own.

As the Owner-Resident, you can increase your Co-Ownership Interest and transfer your Co-Ownership Interest to a Permitted Transferee, provided you follow the conditions set out in this Agreement and Applicable Laws.

Please refer to Article 4 in the Owner-Resident Agreement for more details about how this works.

ORA Ref: Article 4

As the Owner-Resident, you can change your Co-Ownership Interest simply by communicating the desired amount of the increase with Key through our App. You have a chance to do this each month, between the 10th day and the 24th day of the month.

ORA Ref: Article 4.1

Your Co-Ownership Interest can change based on four things:

1. 1

   Making additional investments will increase your Co-Ownership Interest.

2. 2

   As your Suite Value changes, your Co-Ownership Interest will change proportionally as well.

3. 3

   Any update to your Co-Ownership Interest will affect your monthly Ownership Benefit as well.

4. 4

   Additional Co-financing to complement the additional investment, if any.

ORA Ref: Article 4.1

The Owner-Resident commits to a minimum one (1) year of residency in their Suite, during which time they cannot move or redeem equity.

Yes, you can own 100% if you like.

There's an initial three year term where you can only own up to 90% -- your investments are appreciating with the market this entire time. After the initial term, you are welcome to own 100% of your Suite, at which time the ORA will no longer apply and you will be on title. Key is even happy to help you arrange a mortgage so you can own 100% if you'd like.

There's no pressure to ever own 100% though if you don't want to. It's completely up to you. Either way, you are building Home Equity with every investment you make, starting from your initial investment when you move in.

ORA Ref: Article 5.1

Key is working with government to qualify for the RRSP Home Buyer Program. However, at this time, you cannot use your RRSP for the initial investment without the potential of incurring taxes the following year.

We are working hard to change this - and the strong government focus on making homeownership much more accessible gives us confidence - but we do not yet have a final decision.

So, if you decide to withdraw from your RRSP to fund the initial investment - and you cannot repay the funds you borrowed to your RRSP within the same calendar year - those funds would be subject to tax.

The good news is that you can use your RRSP if you decide longer term to buy 100% of your Key Suite, or another home. We encourage you to speak to your Lawyer about this when they review the ORA, so you have the benefit of independent counsel.

Key is working with government to qualify for Principal Residence status so that our Owner-Residents would not be subject to paying Capital Gains. However, at this time, your Suite does not qualify as a Principal Residence.

As a result, if you decide to move and sell, you would be subject to the Capital Gains tax laws for the appreciation of your Co-Ownership Interest.

We are working hard to change this - and the strong government focus on making homeownership much more accessible gives us confidence - but we do not yet have a final decision. We encourage you to speak to your Lawyer about this when they review the ORA, so you have the benefit of independent counsel.