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A couple meeting with a lending specialist about co-op & co-ownership housing financing

A Smart Path to Owning Your Home

Co‑Op and Co‑Ownership Housing Financing

Northern Birch offers expert financing solutions for co‑operative housing and co‑ownership properties in Ontario.

Start Your Pre‑Approval Today

Why Choose Northern Birch for Co‑Op & Co‑Ownership Financing

With over 60 years of experience, Northern Birch Credit Union is a trusted leader in co‑op housing financing, with roots in the Estonian community's long‑standing history of co‑operative housing in Ontario. Our thorough property review process, extensive list of approved co‑op properties, and competitive rates tailored to co‑op ownership and co‑ownership mortgages, ensure a seamless experience.

We provide pre‑approvals, flexible loan terms, and now offer a new Home Equity Line of Credit (HELOC) for co‑ops and co‑ownerships.

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Experience That Makes the Difference

Our specialists have 20+ years of experience in co-op financing and regularly conduct seminars to educate Toronto realtors on these unique housing models.

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Liisa Keevalik

Liisa Keevalik

Manager, Retail Lending

Liisa Keevallik brings over two decades of extensive experience in lending. As your advocate, Liisa and her team offer tailored advice and share real-life experiences to ensure your financial well‑being. They understand the evolving landscape of lending regulations, prioritizing open communication for the best outcomes. Her dedicated team embraces the credit union’s philosophy of members first, offering transparent service and the right products to meet your needs.

Email: lending@northernbirchcu.com
Phone: 416-465-4659, Option 3

Get Pre‑Approved for Financing
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“The Northern Birch mortgage specialist was not only personable but also knowledgeable, professional, and efficient throughout the application and approval process.

I was made to feel as though I was part of a team looking for the best solution that would allow me to meet my home ownership goals.”

Tiina from Toronto

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A couple moving furniture in a new co-op or co-ownership property

Financing Features at a Glance

Our financing for both Co‑op and Co‑ownership properties is designed to fit your unique needs.

Shared Key Features

  • Amortization: Up to 30 years
  • Loan Terms: Flexible 1-5 year terms
  • Interest Rates: Fixed or variable
  • Free Pre‑approval: Know your budget and confirm property eligibility - no cost, no obligation.

Financing is available for a maximum of up to 80% of an appraised value.

Note: Reviewing the specific bylaws of the Co‑op or Co‑Ownership will give the potential owner clarity for the down payment requirement.

Get Pre‑Approved for Financing

What is Co‑op Housing and Co‑Ownership?

Co‑Op Housing

In a co‑operative housing model, you purchase shares in a co-operative corporation, granting you the right to live in a specific unit. Co‑ops are member‑controlled and often provide more affordable housing options.

Co‑Ownership

Co‑ownership involves jointly owning a property with others, often making homeownership more accessible.

Co‑ops vs. Co‑ownerships: At a Glance
Feature Co‑op Co‑ownership
Ownership type Purchase shares in a corporation Own a percentage of property directly
Title No deed; Share certificate only Registered title on deed
Financing Share loan via specialized lender Traditional mortgage financing up to 80% of appraised value
Affordability Lower purchase price Often more affordable than condos

Benefits of Co‑Op Housing and Co‑Ownership

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Drawing of a hand receiving cash, representing Affordability

Affordability

Lower purchase price or shared costs make it easier for some buyers to enter the housing market. Monthly costs, such as maintenance fees, are often lower than traditional condominiums, as they are divided among members or owners.  Co‑op maintenance fees include property taxes.

Drwaing of a circle around three individuals, representing Community-oriented living

Community‑oriented living

Members participate in decision‑making, which fosters a stronger sense of community and shared responsibility.

Drawing of weight scales, representing Stability

Stability

Co‑ops often discourage speculation and flipping, promoting long‑term residency and stability – beneficial for seniors, families, and community‑minded individuals.

Start Your Pre‑Approval Today
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Applying for Co‑op and Co‑Ownership Housing

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Step 1

Secure Financing

Get pre‑approved with Northern Birch to confirm eligibility and budget.

Step 2

Get Approval by a Co‑op Board

Once a purchase agreement has been accepted, the co‑op will begin its own application process. This typically includes employment verification and a board interview to learn more about the prospective shareholder(s) before approving the transfer of shares.

Note: Some Co‑ops include age restrictions in their bylaws, often intended to serve seniors.

Get Pre‑Approved for Financing
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A couple hugging after securing co-op or co-ownership financing

HELOC for Co‑ops and Co‑ownerships

A Home Equity Line of Credit (HELOC) lets you access equity in your co‑op or co‑ownership home for things like renovations or investments, making it a smart, flexible option.

Features:

  • Fully open line of credit with no ongoing fees
  • Set up as a collateral loan for future borrowing flexibility

Call Us To Learn More

Frequently Asked Questions

Co‑op loans are treated similarly to large personal loans, with rates slightly higher than traditional mortgages. Co‑ownership loans are also above standard mortgages, but generally lower than co‑op loan loans. For current rates, please call 416-465-4659 (option 3).

The HELOC for co‑ops and co‑ownerships will be fully open, with no recurring fees. It will be structured as a collateral loan, allowing future flexibility to be converted to a term mortgage, without additional legal fees. The minimum payments on all HELOCs are monthly interest.

Yes. Many co‑ops have bylaws that can restrict financing amounts, for example, they may mandate a 50% down payment, whether or not the unit will be owner‑occupied.

Not necessarily. We specialize in these loans, but the property must be on Northern Birch's approved list to be eligible. We can help you confirm a property's eligibility, give us a call today!

 
 
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