Co-Ownership Strategies Rising in Expensive Canadian Cities
As home prices remain high, more buyers are teaming up — but not just couples
In 2025, Canadians are increasingly embracing co-ownership as a way to break into pricey urban housing markets. While joint mortgages between partners have always existed, today’s trend includes friends, siblings, and even strangers teaming up to qualify for a home.
With average home prices in cities like Toronto and Vancouver still far outpacing incomes, this isn’t just a niche — it’s becoming a serious strategy.
“We’re seeing a 38% rise in joint mortgage applications from unrelated parties,” says a senior broker at DLC Mortgage Group.
What Is Co-Ownership, and How Does It Work?
Co-ownership refers to two or more people buying and owning a property together. It can take the form of:
- Joint Tenancy – All owners share equal rights, and ownership passes automatically to the other if one dies.
- Tenants in Common – Each party can hold different ownership shares, and can pass their share to heirs.
📋 Co-Ownership Models — Joint Tenancy vs Tenants in Common
| Aspect | Joint Tenancy | Tenants in Common |
|---|---|---|
| 🏠 Ownership Share | Equal shares for all co-owners | Can be equal or unequal shares |
| ⚖️ Survivorship | Yes — property passes automatically to surviving owner(s) | No — deceased owner’s share goes to their estate |
| 📝 Exit & Transfer | Harder to sell without consent from others | Can sell or transfer your share independently |
| 📄 Legal Use | Often used by couples or family members | Common for friends, investors, or co-buyers with separate finances |
Infographic: Mortgage.Expert | Legal structure breakdown for co-buyers in 2025
Most co-buyers also opt for co-ownership agreements — legal contracts outlining who pays what, exit clauses, and what happens if someone wants to sell.
Why It’s Rising in 2025
Affordability is the key driver. In cities like Toronto, qualifying for a detached home requires a household income of $250K+ — far above median earnings.
For many, splitting the cost is the only realistic way in. Plus:
- Rising rent costs make pooling for ownership more appealing
- Some lenders now offer co-ownership specific mortgage products
- Cultural normalization — more media, influencers, and communities talking about it
📊 Increase in Joint Mortgage Applications — 2021 to 2025
| Year | Applications Submitted | % Change YoY |
|---|---|---|
| 2021 | 15,300 | — |
| 2022 | 17,800 | +16.3% |
| 2023 | 21,200 | +19.1% |
| 2024 | 25,700 | +21.2% |
| 2025 (est.) | 29,000 | +12.8% |
Chart: Mortgage.Expert | Data compiled from lender reports 2025
Things to Watch Out For
While co-ownership can make homeownership possible, it comes with risks:
- If one party defaults, the others are still on the hook
- Selling requires group consensus unless otherwise agreed
- Exit planning is crucial — a good agreement avoids ugly disputes
📌 Talk to a Mortgage Expert
Thinking of buying with a friend or sibling? Get expert advice on co-ownership strategies, lender-approved options, and legal protections before you buy.
Explore Co-Ownership FinancingMortgage.Expert Take
Co-ownership isn’t just for romantics anymore. In 2025, it’s for pragmatic Canadians ready to team up, draft a contract, and buy smart. With the right financial advice and legal safeguards, it can be a powerful entry point into today’s housing market.
Clara Desai
Articles: 294Related Posts
Stuck with a Mortgage Decision?
Don’t stress — our team is here to help. Reach out for free, no-obligation guidance.
Contact the Experts