Your Guide to Co-Ownership of a Home in Canada

With housing prices on the rise, co-ownership is becoming a practical and increasingly popular way to buy a home. Whether you are partnering with a spouse, friend, or family member, sharing a home and the mortgage can make property ownership more attainable. At Canadian Mortgage Professionals, we help Canadians navigate this approach with clarity and confidence.

What Is Co-Ownership?

Co-ownership means two or more individuals jointly own a home. It can make buying in competitive markets more accessible by pooling resources and sharing financial responsibilities. Common structures include joint tenancy and tenancy in common, each with its own legal and financial implications.

Mortgage Implications of Co-Ownership

Joint mortgage responsibility
Every co-buyer shares full responsibility for the mortgage payments. If one person misses a payment, it can impact everyone. Lenders assess the combined credit scores, incomes, and debts of all parties involved.

Ownership types matter

Joint tenancy gives equal ownership and includes a right of survivorship. If one co-owner passes away, their share automatically transfers to the surviving co-owner or co-owners.
Tenancy in common allows for unequal ownership shares and the ability to pass your share to someone through inheritance.

Why a Co-Ownership Agreement Is Essential

A legally binding co-ownership agreement is your roadmap for a successful partnership. It should clearly outline:

Ownership percentages and financial contributions
Responsibilities for mortgage payments, property taxes, and maintenance
Decision-making procedures
Exit strategies and what happens if someone wants to sell their share

Benefits and Considerations of Co-Ownership

Advantages

Greater purchasing power by combining incomes, which can increase borrowing capacity
The ability to enter the housing market sooner

Challenges

Money and property decisions can cause strain if expectations are not clearly set
If one co-owner wants to sell or leave, buying out their share may require re-qualifying for a mortgage

Tips for a Successful Co-Ownership

Choose your co-buyer carefully
Select someone you trust who shares your financial and homeownership goals.
Get pre-approval together
Understanding your combined borrowing power before shopping will help you set a realistic budget.
Have a clear legal agreement
This protects everyone involved and helps prevent disputes.
Work with experienced professionals
A mortgage broker, real estate agent, and lawyer can ensure the process is smooth and fair.
Plan for life changes
Outline what happens if someone moves, passes away, or experiences a change in finances.

Work With Canadian Mortgage Professionals for Smarter Co-Ownership

At Canadian Mortgage Professionals, we know that co-ownership can be a smart path to homeownership when it is handled properly. We provide: