Co-op & Co-Ownership Financing
We are proud to offer financing for
co-ops & co-ownerships - a unique product offered by very few financial institutions.
Co-Op and Co-Ownership Financing
A flexible option, giving you more choice when it comes to your home.
- Financing up to 80% of the appraised value of the co-op or co-ownership
- Amortization up to 30 years
- Loan terms of 1 - 5 years
- Fixed and variable interest rates
- Pre-approvals available
What are co-ops and co-ownerships?
What is a co-op?
In contrast to purchasing a condo or a house where you own the property, when you buy into a co-op, you become a shareholder in a corporation that owns the property. As a shareholder, you are entitled to exlusive use of a housing unit in the property. All of the owners share the use and enjoyment of common elements, or common areas. Typically, the Board of Directors of the co-operative corporation has to give its approval before an owner can sell his or her shares and assign the leashold interst to someone else. Since a co-op does not include ownership of the unit, co-op financing differs from a typical mortgage. Northern Birch is proud to be experts in this department, and offer very competitive financing options for co-ops.
What is a co-ownership?
Unlike a co-operative, a co-ownership buyer does not generally obtain shares of the corporation, instead the buyer acquires a percentage ownerhip in the building and the land on which it is located. The buyer then has exclusive right to occupy a particular unit, and similar to co-ops, has shared rights with each of the other owners for access and use of common elements and common areas. Generally, an owner in a co-ownership corporation does not need the consent of the Board of Directors to lease or mortgage his or her unit. The co-ownership Board does not need to be made aware of the mortgage funding.