SKYIRE HomePlan FAQs

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When you purchase a home through SKYIRE HomePlan, the title is not transferred to you until you are in the position to qualify and take out your own mortgage. Ideally, most HomePlan purchasers aim to have enough equity saved to purchase the home by the end of year three or in year four. This provides HomePlan purchasers enough time to build equity in the property, as well as improve their credit rating in order to become fully capable of qualifying for a mortgage. In the mean time, all of the equity built-up by the initial deposit and ongoing monthly contributions is protected by SKYIRE HomePlan’s “Right-to-Purchase” agreement registered on title. The Right-to-Purchase agreement includes all of the rights which make this plan unique and beneficial for the purchaser.
A Right-to-Purchase is an option but not an obligation to buy the property. In this case, the Right-to-Purchase provides security to the HomePlan purchaser and protects their equity. All HomePlan options last for five years but give the HomePlan purchaser a choice to take ownership early if they qualify sooner than expected. By registering the HomePlan agreement against title to the property, a HomePlan purchaser’s rights are protected and secured. The agreement is a registered right that can be sold to someone else. If by the time a HomePlan purchaser is ready to buy, the property is no longer suitable to them, the property can be listed for sale. When the property is sold, the HomePlan purchaser would get the benefit of any net proceeds above the SKYIRE HomePlan price. This re-sale right is one of the big factors that make SKYIRE HomePlan unique, as it provides a great win-win opportunity for HomePlan purchasers to share in mortgage principal pay down and home value appreciation. For complete details on SKYIRE HomePlan results, please refer to the SKYIRE HomePlan Exit Scenario tables at the end of this document.
The rights of a HomePlan purchaser under SKYIRE HomePlan includes the quiet enjoyment of the property as a home, the benefit from a share of the increase in value in the property or mortgage pay down and the build-up of equity due to the deposit along with the monthly contributions.
The HomePlan purchaser is responsible for any maintenance or repairs from any damage during the rental period as well as the deductible on the insurance policy in the case of any major damage just like any homeowner would be. The HomePlan purchaser is also required to make their regular monthly payment on time as is normally the case with any residential tenancy agreement. This combination of rights and responsibilities is what makes SKYIRE HomePlan so attractive and gives everyone the opportunity for a great experience.
To start a SKYIRE HomePlan purchase, the minimum deposit needed is 1% of the home’s purchase price. This can easily be saved in 8-12 months and with brand new homes there can even be enough time to select the home and finish saving for the deposit before constriction is completed. If you have not yet saved this amount, there is an accelerated savings program, called SKYIRE HomeSaver, which can help assemble the deposit.
Prior to the home selection process starting, a refundable $500 deposit is required for the time commitment of a representative. If a satisfactory home is not found, the deposit is fully returned. This time may include looking at properties, arranging showings and the time to find a matching SKYIRE HomePlan funder to close on financing the purchase. Once a home is selected and a purchase agreement is negotiated, the deposit would be placed in trust prior to the contract conditions being removed. For any purchase with SKYIRE HomePlan, there is always at least two weeks planned for a home inspection and due diligence. It is important to make sure there is enough time for everyone to have their questions answered and to eliminate the feeling of being rushed.
SKYIRE HomePlan is a collaborative effort between a licensed real estate agent, a mortgage broker and a SKYIRE HomePlan funding representative. The mortgage broker confirms the pre-qualification requirements for obtaining a mortgage in the future. The real estate professional provides the service of viewing properties and oversight of the closing process. And the funding representative matches the purchaser to a HomePlan financing provider as well as provides advice on property selection for the best value long term. The real estate team administers the program up until the final transfer of title to the HomePlan purchaser. All the professionals involved look forward to see each SKYIRE HomePlan succeed with the HomePlan purchaser ultimately getting approved for a mortgage and taking title in their name.
Any purchaser buying a home with SKYIRE HomePlan has a monthly administration cost of $25. This monthly amount covers the administration and oversight on behalf of the investor who is funding the property. Also, there is a property inspection completed every six months leading up to the final transfer of title to provide advice on ways to increase home value and make sure the home is being well maintained. This is all covered by the administration fee.
Every home contracted to be purchased with SKYIRE HomePlan has a complete inspection done by a bonded professional home inspector. If there are major issues uncovered prior to removing conditions on the offer, then HomePlan will not proceed with that choice of property. Properties with issues such as imminent roof replacement or furnace/plumbing replacement requirements are generally avoided. If everyone is satisfied with the inspection report and comfortable with the condition of the home, then the HomePlan can proceed. From the date of move in, the HomePlan purchaser is responsible for the cost of any repairs and maintenance of the home. This also gives the purchaser the ability to manage any repairs needed and increase the value of the home as much as possible before taking ownership of the property.
The SKYIRE HomePlan purchaser pays for the home inspection prior to moving in at the beginning of the HomePlan term. As the HomePlan purchaser is responsible for repairs, they need the benefit of a report and recommendation from a certified professional home inspector. A list of potential home inspection companies can be recommended where pricing has been pre-negotiated to give the SKYIRE HomePlan purchaser the best deal.
The monthly rent is set equal to the amount a homeowner would pay to cover the mortgage payment, property taxes and the monthly strata fees in the case of a condo, or the monthly portion of the property insurance in the case of a house. This monthly rental amount is set this way so the additional monthly contribution for the equity credit can be as large as possible. The larger the monthly contribution, the sooner the likelihood the HomePlan purchaser is able to qualify for a mortgage and take title of the property.
Once the SKYIRE HomePlan program is set and the monthly rental amount is determined for the entire property, any rent a HomePlan purchaser is able to generate from a room or suite in the home is earned entirely by the HomePlan purchaser. However, a couple of important conditions must be met. Before renting out any portion of the home, the HomePlan purchaser must obtain written approval from the HomePlan funder. As well, the HomePlan purchaser must reside in the home on a full-time basis. And, the HomePlan purchaser would be responsible for any damages or issues caused by the renter.
Renting out a portion of the home is a great option for reducing the monthly costs of purchasing the home and also positions the HomePlan purchaser to have a more comfortable experience in homeownership once a new mortgage is obtained.
As with any regular rental agreement, monthly payments need to be paid on the first of the month without fail. If a payment is missed by accident, it needs to be made up within five business days. A HomePlan purchaser’s mindset should be the same as it would be when purchasing with a mortgage. There is equity at stake so a HomePlan purchaser needs to arrange their personal finances to make sure they always have enough money to cover the monthly payment on time. Failure to do so could result in loss of your equity, security deposit, damage deposit and termination of occupancy as is normally the case.
Yes. As with any regular tenancy agreement, the deposit is returned and in this case becomes a credit towards the purchase of the home. Forming part of the total equity used for the purchase, it is added to the HomePlan purchaser’s credit for final closing and transfer of title.
SKYIRE HomePlan starts with a five-year option term before the HomePlan purchaser would need to obtain a mortgage and complete on the purchase. It is always possible to complete the purchase sooner but a minimum one year’s market value adjustment will apply to the price to cover the closing costs for the HomePlan investor who funded the property.
(For complete details on exit scenarios for SKYIRE HomePlan, please refer to the SKYIRE HomePlan Exit Scenario tables at the bottom of this page.) Congratulations! You are now ready to become the registered owner on title to your own home. Your next steps depend on which purchase option you chose:

1) Participation Option
If you chose the Participation Option, you would earn a share of the mortgage pay down and proportionally participate in any market value appreciation of the home. When the time comes to exercise your Right-to-Purchase, you will notify your SKYIRE HomePlan contact that you are ready to purchase (close) on your home. The HomePlan investor will be notified that you are exercising your Right-to-Purchase option and two independent market evaluation appraisals will be done on the home. A Completion Form will be sent to you that includes the final purchase price (based upon the two independent appraisals) and the accumulated credit you have earned through your monthly payments.

Your SKYIRE HomePlan contact will coordinate a final closing date between you and the HomePlan investor. A notice is provided to the law office handling the title transfer/mortgage registration and will include a calculation of closing proceeds.

The final step for the SKYIRE HomePlan program includes the home being registered in your name and then you are officially a homeowner!

2) Fixed-Price Option
If you chose the Fixed-Price Option, you would have known from day one what the final purchase price of your home will be. This price was determined by an analysis of the real estate market conditions in the area where you bought your home. Typically, the value increase per year will range from 2.5% to 4% annually, but may be higher, depending on the market in which the home is located. Once you have accumulated enough equity in the property and are ready to take title of your home, the steps involved in exercising of your Right-to-Purchase is similar to the Participation Option.

The HomePlan program has been designed to help individuals attain the goal of owning a home. Every effort is made to help you succeed in the program and eventually exercise your Right-to-Purchase and become a homeowner. However, sometimes life events happen and this may not be possible. For complete details on exit scenarios for HomePlan, please refer to the HomePlan Exit Scenario tables below.
There are five possible exit scenarios for HomePlan. Each outcome is different depending on which HomePlan purchase option was chosen (i.e. Participation Option or Fixed-Price Option). Below are the detailed scenarios for each HomePlan purchase option.

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HomePlan Exit Scenarios − Participation Option

1. The HomePlan purchaser builds-up enough equity in the home to close in 3-5 years. The HomePlan purchaser would purchase the home based on the market value at the time of completion of the purchase. The HomePlan purchaser earns their share of the mortgage pay down and proportionally participates on any market value appreciation of the home. Typical real estate commissions would apply against the sale of the property and are paid out of the HomePlan investor’s profit in the transaction.
2. The HomePlan purchaser obtains additional funds and is able to close within 1-3 years. Subject to the minimum one-year appreciation amount required to cover the HomePlan investor’s transaction costs, including transfer tax and legal fees, the HomePlan purchaser would earn their share of mortgage pay down along with a proportional participation in the market value appreciation in the home.
3. The HomePlan purchaser is unable to proceed at the end of the 5-year term of the agreement. If the HomePlan purchaser is unable to or elects not to proceed with completing the purchase at the end of the term, they do not participate in the mortgage pay down or in the potential market value appreciation of the home. The home would be listed for sale and based upon the actual sale price (assuming it is above the original purchase price) the HomePlan purchaser would have the opportunity to receive their contributed equity back upon the sale. The HomePlan investor has the option of matching the best offer received during the listing process and paying out the HomePlan purchaser.
4. The HomePlan purchaser needs to move prior to the end of the term and is no longer able to stay in the home. The purchaser would be responsible for listing the home for sale (as they would be if they were already the owner) and would cover the costs and commissions of re-selling it out of their contributed equity. Depending on the price of the best offer received, the investor has the choice of buying out the purchaser for the net amount due after costs and commissions from that best offer. If the purchaser arranges for the sale without missing any normal monthly payments they are still eligible to exercise their right and receive the benefit of the mortgage pay down as well as proportionally participate in the appreciation of the home.
5. The HomePlan purchaser elects to exercise their right to purchase but without closing based on having an alternative buyer willing to pay more. In the case of a quickly rising housing market, the HomePlan purchaser is able to take advantage of their right to purchase by first finding a new buyer (by listing the property or other marketing efforts) and then exercising their right. The sale would transact at the price they received the offer for and the HomePlan purchaser would participate in the appreciation and mortgage pay down. Any commission payable from the marketing efforts the HomePlan purchaser organizes is to be first paid out of the HomePlan purchaser’s profit.

 

HomePlan Exit Scenarios − Fixed-Price Option

1. The HomePlan purchaser builds-up enough equity in the home to close in 3-5 years. The HomePlan purchaser would purchase the home based on the agreed annual rate of appreciation. The HomePlan purchaser earns their share of the mortgage pay down and fully participates on any market value appreciation of the home above the fixed price. Typical real estate commissions would apply against the sale of the property and are paid out of the HomePlan investor’s profit in the transaction.
2. The HomePlan purchaser obtains additional funds and is able to close within 1-3 years. Subject to the minimum one-year appreciation amount required to cover the HomePlan investor’s transaction costs, including transfer tax and legal fees, the HomePlan purchaser would earn their share of mortgage pay down along with any potential market value appreciation in the home above the fixed price.
3. The HomePlan purchaser is unable to proceed at the end of the 5-year term of the agreement. If the HomePlan purchaser is unable to or elects not to proceed with completing the purchase at the end of the term they do not participate in the mortgage pay down or in the potential market value appreciation of the home. The home would be listed for sale and based upon the actual sale price (assuming it is above the original purchase price) the HomePlan purchaser would have the opportunity to receive their contributed equity back upon the sale. The HomePlan investor has the option of matching the best offer received during the listing process and paying out the HomePlan purchaser.
4. The HomePlan purchaser needs to move prior to the end of the term and is no longer able to stay in the home. The purchaser would be responsible for listing the home for sale (as they would be if they were already the owner) and would cover the costs and commissions of re-selling it out of their contributed equity. Depending on the price of the best offer received, the HomePlan investor has the choice of buying out the HomePlan purchaser for the net amount after costs and commissions from that best offer. If the HomePlan purchaser arranges for the sale without missing any normal monthly payments they are still eligible to exercise their right and receive the benefit of the mortgage pay down.
5. The HomePlan purchaser elects to exercise their right to purchase but without closing based on having an alternative buyer willing to pay more. In the case of a quickly rising housing market the HomePlan purchaser is able to take advantage of their right to purchase by first finding a new buyer (by listing the property or other marketing efforts) and then exercising their right. The HomePlan purchaser would get all profit above their contracted option price. Any commission payable from the marketing efforts the HomePlan purchaser organizes is to be paid out of the HomePlan purchaser’s profit.

 

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