More Canadians are choosing to co-own homes, not just for cultural or family reasons, but as a solution to the growing problem of housing affordability. In 2023, a Royal LePage survey found that 6% of Canadians co-own homes with someone other than their spouse or partner. Of those co-owners, 76% cited affordability challenges as their primary motivation, rising to 83% for those aged 25 to 34.
Most co-owners live with family members (89%), while 7% share with friends, and 8% co-own with individuals outside their inner circle. Nearly half of co-owners reside together in the home, 28% do not cohabitate, and 6% don’t use the property as their primary residence.
One example of co-ownership involves two brothers in Surrey, British Columbia, who, despite being in their mid-twenties and single, decided to buy a home together. They each earned about $70,000 per year and saved $2,500 monthly while living with their parents. They jointly purchased a $600,000 condo, making a 10% down payment of $30,000 each. They drafted a clear agreement with a lawyer, stipulating that they couldn’t have live-in partners to avoid family law issues. They viewed this purchase as a stepping stone toward eventually buying their own homes.
Legal counsel is crucial in co-ownership arrangements to address potential conflicts and challenges that may arise.
Corporate co-ownership programs are also becoming more popular, with companies like Toronto-based Ourboro investing up to $250,000 toward a buyer’s down payment in exchange for a share of the home’s future value. This enables homeowners to live in the property independently and manage mortgage payments themselves, thereby building equity and a larger down payment for future mortgage contracts. Buyers typically need at least a 5% down payment, with Ourboro contributing the remainder to reach a 20% down payment. This approach allows for a longer amortization period and savings on default-insurance fees.
Co-ownership, whether with individuals or companies, is a growing trend in the face of an increasingly unaffordable housing market. It offers Canadians an opportunity to enter the property market by sharing costs, enabling them to explore more desirable locations or larger properties that would be out of reach with their budget alone.
