Should You Buy a Home With a Friend or Family Member? A Guide to Co-Buying in Canada

For many Canadians, especially in expensive markets like Vancouver, Victoria and other parts of British Columbia, buying a home alone can feel increasingly difficult. Even with a stable income and solid savings, qualifying for a large enough mortgage or building the necessary down payment can be a major hurdle.

That is one reason co-buying a home is getting more attention. Instead of purchasing with a spouse or romantic partner, two or more people — such as siblings, friends, parents and adult children, or other relatives — combine their resources to purchase a property together.

Done properly, co-buying can be a practical way to enter the real estate market sooner, share housing costs and potentially afford a better property than either person could purchase independently.

However, it is also a serious financial partnership. Before combining incomes and signing a mortgage together, everyone involved should understand exactly what they are agreeing to.

What Is Co-Buying?

Co-buying simply means purchasing a property with another person or group of people. Buyers may contribute to the down payment, qualify for the mortgage together and share the ongoing costs of homeownership.

It is important to distinguish co-buying from simply receiving a gifted down payment or having someone co-sign a mortgage. For example, a parent may co-sign to help an adult child qualify without necessarily intending to live in or equally own the home. A true co-buying arrangement generally involves some form of shared ownership.

The concept is becoming increasingly relevant as affordability pressures continue. According to CMHC’s 2026 Mortgage Consumer Survey, 28% of first-time homebuyers said they needed a co-signer other than a spouse or partner to purchase their home, and 54% of those co-signers were parents.

Why Co-Buying Can Make Homeownership More Achievable

The biggest advantage is purchasing power.

When two people apply for a mortgage together, their incomes may be combined for qualification purposes. Their savings can also be combined for the down payment and closing costs.

Instead of one person trying to save $80,000, for example, two buyers may each contribute $40,000.

There can also be significant savings after the purchase. Mortgage payments, property taxes, home insurance, strata fees, utilities and maintenance costs can all potentially be shared between the owners.

For some buyers, the alternative may be spending several additional years renting and saving. Co-buying could allow them to enter the market sooner and begin building equity.

However, being approved for a larger mortgage does not necessarily mean you should borrow the maximum amount available. Buyers still need room in their budgets for home repairs, unexpected expenses, job changes and everyday life.

How Does a Mortgage Work When You Buy Together?

When multiple people apply for a mortgage, the lender considers the financial situation of the applicants, including their incomes, debts, credit histories and other financial obligations.

Borrowers may also need to pass Canada’s mortgage stress test. At federally regulated lenders, the qualifying rate is generally the greater of 5.25% or the mortgage contract rate plus 2%.

This is where co-buying can improve qualification, but it is also where everyone needs to understand the responsibility involved.

If you sign a mortgage as a joint borrower, you should not assume you are simply responsible for “your half.” Joint borrowers can be responsible for repaying the outstanding mortgage debt under the loan agreement.

Imagine two friends agree to split their mortgage payment 50/50. If one loses their job and cannot contribute for several months, the lender still expects the full mortgage payment.

That means the other buyer may need to cover the shortfall to keep the mortgage current.

Co-buyers should therefore think about affordability based on what they can comfortably manage together — not simply the maximum amount a lender is willing to approve.

Decide Who Owns What

Before the purchase closes, buyers also need to decide how ownership will be registered.

In British Columbia, multiple owners commonly hold property as either joint tenants or tenants in common.

Joint tenancy generally includes a right of survivorship, meaning ownership can pass to the surviving joint owner or owners when one owner dies.

Tenancy in common allows buyers to hold separate interests in a property. Those interests can be equal, such as 50/50, or unequal, such as 60/40. B.C.’s Property Law Act also generally provides that where property is transferred to two or more people, they are tenants in common unless a contrary intention appears in the instrument.

For friends, siblings or buyers contributing different amounts, tenants in common may sometimes be appropriate.

There is no universal best choice, though. Estate planning, taxes, relationship status and each buyer’s intentions can all affect the decision.

This is one area where getting independent legal advice before completing the purchase is extremely important.

Talk About Money Before You Buy

A successful co-buying arrangement requires conversations that may feel uncomfortable at first.

How much is each person contributing to the down payment?

Will ownership percentages reflect those contributions?

Will monthly expenses be split equally?

Who pays when the roof needs replacing or the strata announces a special assessment?

Even relatively small expenses can create tension when expectations have never been discussed.

Imagine the property suddenly needs a $12,000 repair. Is that expense divided equally? Does the person who owns 60% pay 60%? What happens if one owner cannot afford their contribution immediately?

There is no single correct way to divide these costs.

What matters is that everyone agrees on the approach before the problem arises.

Create a Co-Ownership Agreement

One of the biggest mistakes co-buyers can make is relying entirely on trust.

Trust is obviously important, but circumstances change.

People get married. They move cities. They change careers. They lose jobs. They have children. Their financial priorities change.

A lawyer can help buyers prepare a co-ownership agreement explaining how the arrangement will operate.

The agreement may address ownership percentages, down payment contributions, mortgage payments, property taxes, utilities, repairs, renovations, use of the home and how major decisions will be made.

Most importantly, it should address an exit strategy.

What Happens If Someone Wants Out?

This may be the most important conversation in the entire co-buying process.

Imagine two siblings purchase a condo together. A few years later, one gets married and wants to purchase another home.

They may want their equity out of the condo and may also need to remove themselves from the existing mortgage before qualifying for another property.

Can the other sibling buy them out?

How will the property value be determined?

How much time will the remaining owner have to arrange financing?

What happens if they cannot afford to buy the other person out?

Will the property automatically be sold?

Working these details out while everyone gets along is much easier than trying to negotiate them during a disagreement.

It is also important to remember that changing ownership does not automatically mean someone disappears from the mortgage. The remaining buyer may need to qualify for refinancing or new financing before the lender agrees to release another borrower.

First-Time Buyer Benefits Can Get Complicated

Co-buying can also affect first-time buyer programs, so eligibility should be reviewed before making an offer.

In British Columbia, the First Time Home Buyers’ Program can reduce or eliminate property transfer tax for qualifying purchasers.

If multiple people purchase a property and only some qualify, the exemption can be based on the percentage of ownership belonging to the qualifying first-time buyer.

For example, if one eligible first-time buyer owns 60% of the property and the other purchaser does not qualify, only the eligible buyer’s portion may receive the exemption, assuming all other program requirements are met.

Federal programs such as the First Home Savings Account (FHSA) and Home Buyers’ Plan (HBP) also have individual eligibility rules.

Co-buyers should therefore confirm how each program applies to each person rather than assuming everyone involved in the purchase will receive identical benefits.

What About Buying a Home With Your Parents?

Another increasingly common arrangement involves parents helping their adult children purchase a home.

Sometimes that means gifting money toward the down payment. Other times, a parent may co-sign or become a co-borrower so that their income helps the child qualify.

Bank of Canada research published in 2026 found that parental co-signing among first-time homebuyers has increased significantly over the past two decades. The research also found that parental co-signing can substantially increase the amount a first-time buyer is able to qualify for.

But a parent’s signature is not simply a favour.

A co-signing parent may become legally responsible for payments if the other borrower cannot make them, and taking on that debt may also affect the parent’s own finances and future borrowing capacity.

Families should treat co-signing with the same seriousness as taking out the mortgage themselves.

Questions Every Co-Buyer Should Ask

Before purchasing together, everyone involved should be able to answer some basic questions:

• How much will each person contribute upfront?
• What percentage of the property will each person own?
• How will mortgage payments and household expenses be divided?
• What happens if someone temporarily cannot make their payments?
• Who pays for repairs and renovations?
• What happens if one owner wants to sell?
• How will a buyout price be determined?
• What happens if one owner dies?
• How will major disagreements be resolved?

If those conversations feel too uncomfortable to have before purchasing, sharing a mortgage together may not be the right arrangement.

Is Co-Buying a Good Idea?

Co-buying is not automatically a great idea — and it is not automatically a risky one.

It depends on the people involved, the property being purchased and how carefully the arrangement is structured.

For buyers who communicate well, have compatible financial goals and put clear legal agreements in place, purchasing with a friend or family member can be a creative way to make homeownership more achievable.

The key is not treating the arrangement casually.

You may be combining your credit, savings, debt and potentially hundreds of thousands of dollars in future home equity with another person.

The relationship may be personal, but the financial arrangement should be handled professionally.

Start With the Mortgage Conversation

If you are considering buying with a friend, sibling, parent or another family member, speaking with a mortgage professional early can help you understand what the numbers actually look like.

A mortgage broker can review each applicant’s income, debts, credit and available down payment, explain how different lenders may assess the application and help determine a realistic price range before you begin house hunting.

From there, a real estate lawyer can help determine the appropriate ownership structure and establish a co-ownership agreement that protects everyone involved.

Co-buying may be the strategy that makes homeownership possible sooner than you expected.

Just make sure your plan covers more than getting the keys.

A strong co-buying arrangement should also answer what happens five or ten years after you move in.