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Let’s assume you buy a house worth $1 million. With Lotly you would need less than $80 thousand up front. Now assume you pay your mortgage each month and the home appreciates to $1.36M in 5 years (8% annual appreciation). At this point you’d have a total of just under $250 thousand in equity. The $250 thousand is made up part of your initial payment ($50 thousand), your piece of the appreciation ($90 thousand), and what you’ve paid down on the mortgage ($110 thousand).
Lotly gathers investors who will cover up to 15% of your down payment. You’ll put down as little as 5% and other purchase costs (approx 3%).
You own and live in your dream home. You are responsible for paying the mortgage and monthly bills.
Refinance or sell the home to pay out investors. Investors are paid out a piece of the home’s appreciation. They only make money if the home has appreciated in value.
Own a home for just 5% down. Your monthly cost will also be lower, because Lotly investors help you get a much larger total down payment. At the end of your term, you’ll get your share of the appreciation plus what you’ve paid down on the mortgage.
Put down just 5% of the purchase price. Lotly investors contribute up to $250,000 toward your down payment.
Investors are paid out when you refinance or sell. They'll be paid their original contribution plus or minus a part of the home's appreciation (i.e. the change in value). Investor payout depends on how much they contributed upfront.
*Calculation based on $900,000 property in GTA, 7% home price appreciation, 5.5% mortgage rate, 25yr amortization
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