While many people decide to co-own a home for cultural reasons or to help take care of elderly parents or young children, more Canadians are now turning to co-ownership as a means to combat housing in-affordability.
In 2023, 6% of Canadians said they co-own their home with someone other than a spouse or significant other, with two thirds (76%) of those saying their decision was motivated by affordability challenges, according to a Royal LePage survey.
For those between the ages of 25 and 34, a full 83% said their decision was driven by a lack of affordability.
Of those who currently co-own, 89% are co-owning with a family member, 7% co-own with friends and 8% are co-owning with someone who isn’t a friend or family member.
Nearly half of the respondents say they and their fellow co-owners live in the home together. Another 28% don’t cohabitate while 6% say the property is not used as a primary residence.
A tale of two brothers
British-Columbia-based mortgage broker Angela Calla of the Angela Calla Mortgage Team said she recently worked on a deal involving two brothers in Surrey who decided to purchase a home together.
The brothers were both single, in their mid-twenties and living with their parents while working in the trades. They wanted to move out, but rather than renting, they decided to purchase a home together so they could start building equity, Calla says.
They were each earning about $70,000 a year and could save about $2,500 per month while living with their parents. They ended up purchasing a condo worth $600,000 and made a 10% down payment, contributing $30,000 each.
“Now they were saving money monthly and they were also building equity,” says Calla.
To arrange this, they worked with a lawyer to outline the rules of their agreement, with one important item in their contract being that they can’t have partners living at the house, which could open the door to family law. While this was a small sacrifice, Calla says it was worth it to the brothers, who view this purchase as a stepping stone to being able to purchase their own homes in the future.
“They bought for less than they could be approved for because they know that they’re young and that the next stage of their life would mean that they get in relationships,” says Calla. “You definitely need to consult a lawyer and consider that the life stage that you’re in right now is not the life stage that you’re going to be in in a few years.”
Calla emphasizes that in all cases of co-ownership, it’s essential to meet with a lawyer to discuss the terms of the agreement and how conflicts will be handled should they arise.
Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.
Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at firstname.lastname@example.org or at 604-802-3983.
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