As Toronto’s real estate market continues to grow, more people are joining forces to make homeownership a reality together. For many, this means purchasing a home with a partner. For others, it might mean buying with a friend, sibling, or even a business partner. Regardless of the relationship, co-buying a home in Toronto is a smart way to enter the market — but it requires careful planning and open communication to make it work smoothly.
Start with a Real Conversation
Before you get caught up in listings and house tours, it’s essential to sit down with your buying partner and talk about your expectations. What can each of you afford? Where do you want to live? How long do you plan to stay in the home? These might seem like simple questions, but they can uncover very different goals or deal-breakers. It’s much easier to address those early, rather than in the middle of a bidding war.
Financing as a Team
Getting pre-approved for a mortgage is one of the first steps in the process, and when you’re buying with someone else, your financial profiles are combined. That means lenders will look at both of your incomes, debts, and credit scores to determine how much you can borrow and what terms you’ll receive. If one person has a weaker financial history, it can impact your options, so it’s best to be honest from the start and consult a mortgage expert.
Deciding How to Share Ownership
In Ontario, there are two main ways to share ownership of a property: joint tenancy and tenants in common. With joint tenancy, both buyers own the entire property equally, and if one person passes away, their share automatically goes to the other. In a tenants-in-common arrangement, each person owns a specific portion of the property, which can be divided however you like — and each can pass on their share to someone else.
Choosing the right ownership structure depends on your relationship and long-term plans. It’s a legal decision, so it’s something you’ll want to go over with your real estate lawyer.
Put It in Writing
Whether you’re buying with a romantic partner or a friend, it’s wise to have a co-ownership agreement in place. This legal document outlines each person’s share of the home, how the bills will be split, and what happens if one person wants out. It might not feel like the most exciting part of homeownership, but it’s one of the most important — especially if you want to avoid conflicts down the road.
Think Long-Term
Life changes, and your housing situation might need to change with it. That’s why it’s helpful to have an exit strategy in place. What if one of you wants to sell before the other? Will one person have the option to buy out the other’s share? Will you agree to list the property together? These are all questions worth answering before they become urgent.
Find a Home That Fits Both Lifestyles
When two people buy a home together, especially in a city like Toronto, compromises are inevitable. Try to look for homes that offer enough space and functionality for both of you. Features like multiple bathrooms, separate office or guest space, and flexible layouts can make a huge difference in daily life. Think not just about what you want today, but what might make living together easier over the next few years.
Surround Yourself With the Right Team
Having the right real estate agent, mortgage broker, and lawyer can make all the difference. Professionals who understand co-buying arrangements can guide you through the more complex parts of the process, help you avoid common pitfalls, and ensure both parties are protected every step of the way.
Final Thoughts
Buying a home with someone else is a great way to break into the Toronto real estate market — especially with prices as high as they are. But shared ownership also means shared responsibility. With clear communication, proper legal planning, and the right team around you, co-buying can be both a smart financial move and a positive life experience.
Have questions about buying a home in Toronto? Contact our trusted and experienced team today! We’re ready to help.
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