If you feel like your dream of owning a home is slipping away, maybe it’s time to think about co-ownership. If you’re a millennial or Gen Z’er, you might be wondering how on earth you’re supposed to buy a house when prices are through the roof, interest rates are sky-high, and you’re barely keeping up with your daily expenses. Co-ownership is like the housing equivalent of carpooling, and it might just be your ticket to getting those coveted house keys.
If you were to team up with a friend or family member — Suddenly that seemingly impossible down payment becomes manageable and you might even score a better home in a trendier neighbourhood than you ever thought possible.
But how do you get started? That’s where a savvy mortgage broker comes in. I’ll guide you through the co-ownership jungle, helping you figure out the financial nitty-gritty and finding a deal that works for everyone involved. If you’re tired of watching your rent disappear into the void each month, keep reading to learn more about co-ownership.
The New Home Co-Ownership Reality
Owning a home used to be the classic Canadian success story – the whole white picket fence thing. But these days, it’s starting to feel like a pipe dream for a lot of young Canadians.
Royal LePage did a survey last year that showed some interesting trends. About 6% of homeowners are teaming up with someone else to buy a place – and we’re not talking about couples here. Most of the time (89% to be exact), it’s family members joining forces, usually parents or in-laws. A smaller slice (7%) are doing this with friends.
Traditionally, these setups were about taking care of children and elderly parents, but now It’s mostly because people can’t afford a place on their own. The survey found that a whopping 76% of people who co-own are doing it because they can’t buy alone. This is even more common among Gen Z and younger Millennial buyers who are facing a much higher cost of living than their parents.
What Are The Advantages Of Co-Ownership
Buying a house with others is like splitting a pizza – everyone gets a slice, but it’s cheaper for each person. Why do people love it?
- It’s easier on your wallet. You’re not shouldering all the costs alone – from the down payment to monthly bills.
- You can buy sooner. Instead of saving for years, you might be able to team up and buy now.
- It’s less risky. If something goes wrong, you’re not the only one on the hook.
Lots of Canadians are open to this idea. You can do it with family or friends – whoever you trust to share a big investment with. The most common way to do this is through “Tenancy in Common”, which basically means each person owns a part of the house. You all get to use the whole place, but you each own your own piece of the pie.
Another common approach is for parents to help out by co-signing mortgages for their adult children. This can mean that kids qualify for better financing, leveraging their parents’ financial stability for better terms and mortgage rates. Sometimes, this may result in whole families or siblings living together, or the parents investing in the home while living somewhere else.
Working with a mortgage broker means you’ll have someone to help you work out the financial details, find the best options and lowest mortgage rates. It’s a new spin on an old idea, helping more people get their foot in the door of homeownership.
What To Keep In Mind If You’re Considering Co-Ownership
Buying your first home with others can be great, but it’s not as simple as splitting a pizza. Here’s what you need to think about before jumping in:
- Get it in writing. Make a detailed agreement that spells out who’s responsible for what. Think of it like a roommate agreement, but way more serious. This helps avoid “he said, she said” drama later on.
- Talk money upfront. Be crystal clear about who’s paying for what. This includes the down payment, monthly mortgage, taxes, and even things like fixing a leaky roof. Nobody likes surprises when it comes to their wallet.
- Decide who does what. Figure out who’s mowing the lawn, who’s fixing the sink, and who’s calling the plumber. It’s like splitting up chores, but for your shared home.
- Plan your escape. Yeah, it sounds dramatic, but you need to know how to get out if things don’t work out. Decide how you’ll sell your part if you want out, and who gets first dibs on buying it.
- Have a plan for disagreements. Sometimes, even best friends fight. Make sure to include a way to solve arguments in your agreement, maybe through a monthly household meeting or with a neutral mediator like a mutual friend..
Remember, a little planning now can save a ton of headaches (and maybe even friendships) later!
Think About A Mortgage Broker As Your Co-Ownership Partner
If you’re thinking about buying your first home with friends or family, you’re probably wondering how to get started. This is where a mortgage broker, like me, can be your secret weapon. I speak “co-ownership” fluently, breaking down complex jargon into plain English. I can be your financial matchmaker, finding a mortgage that fits everyone’s budget and letting you know the latest co-ownership tricks and products in the mortgage world. I’m also happy to be your master coordinator, keeping all co-owners on the same page and helping you plan for future scenarios.
As an experienced mortgage broker, I don’t just make co-ownership more affordable – I can make it less stressful, too. I’ll guide you through the process, turning your homeownership dream into reality. If you’re a millennial or Gen Z’er considering co-ownership, chatting with an accredited mortgage broker is your smartest first move.
Are You Seriously Considering Co-Ownership With a Friend Or Relative? I’ll Find The Best Mortgage For You
Don’t let your home ownership dreams slip away, find that perfect roommate and let’s talk. As a financial advisor and mortgage agent, I’ll sit down with you and we can work out the budgets and mortgage approvals. I’ll find you the best interest rates and mortgage options so all you have to do is find that perfect home. Contact me at 705-315-0516 or book a consultation. Let’s get you moving!