How does a group mortgage work?

If you’re an employee of a company with a flex benefits plan that offers you something like a health care spending account, then you already have a good idea how a GEM Group Employee Mortgage can work.

Essentially, instead of arranging and paying a mortgage directly with a bank or other financial institution, under a the Group Employee Mortgage plan, your employer would arrange a mortgage for you and also subsidize a portion of the interest you pay as part of the mortgage.

The benefit to you, as the employee, is that you can earn additional funds that are directed towards your biggest expense – your mortgage – while at the same time earning this additional income in a tax-free way (*when implemented properly in compliance with CRA rules).

Your employer builds goodwill with the employees, helps to reduce your overall cost of living while demonstrating that they are a great employer worthy of your loyalty.

GEM can be an extremely tax efficient form of compensation, and a great alternative or even better, supplement, to existing group benefit plans and total rewards compensation programs.

Check out our fun little infographic below for a better idea how it works, and if you have an awesome boss, let them know about GEM – you’ll be glad you did!

group mortgage benefit