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Buying Home with Friends: Alternative Path to Owning a Home

In response to the increasingly challenging conditions in the housing market in Canada, people are turning to new, creative ways to own their first homes. The high prices of homes and the complexity of getting a mortgage as an individual are leading many first-time homebuyers to consider the option of buying with friends. This group of people sharing their resources to break through the financial barriers is now an unusually imaginative version of homeownership, and it’s all set out in a new report about alternative housing options that’s mainly about friends using what’s available to try to step up on the housing ladder.

By teaming up, graduates and young families are already proving that with a creative, alternative approach, you can turn the dream of homeownership in increasingly expensive Canadian markets into reality today. To some, it might sound risky or compromise the traditional Canadian narrative of home as an out-of-reach capital investment. But for many friends who are choosing to invest together, it is a practical arrangement that not only makes getting into the market possible but potentially strengthens their lifelong communal ties. Well into their 30s—and sometimes into their 40s—a group of friends decided they should stop complaining.

As living expenses continue to spike, an increasing number of individuals are finding that the prospect of owning a home is becoming less and less attainable.  Should you be finding that realizing your dream of establishing a home of your own is an individual aspiration that you find yourself hard-pressed to pull together, consider reaching out to the people you know.  What is learned in reports recently released from diverse sources is that the group strategy has worked for several people in very diverse areas.

The Mechanism of Co-ownership

Jointly owning real estate means sharing with friends or others and provides opportunities to invest where one person can`t afford to. It is typically organized as:

In the case of joint tenancy, each party possesses the same percentage of ownership and the same rights to utilize the property. One of the benefits of owning a property as joint tenants is the right of survivorship. This means if one owner passes away, the surviving owner or owners inherit the deceased owner’s share. This right bypasses the deceased owner’s will or the law of intestacy if a decedent dies without creating a will.

2. People who have a stake in a building in common: Individuals who have a divided share of a building have the right to ownership to unequal amounts of the property and there are no secured rights for survivorship. After one of the individuals passes away, the stake that belonged to the deceased becomes part of their property and is allocated as it was instructed by them in the will of the deceased.

Advantages and Disadvantages of Purchasing a Home with Friends

Buying a house with friends has turned into an appealing option for multiple individuals as it presents a corroboration process to overcoming financial obstacles in the real estate business. Meanwhile, this agreement has the capability to give multiple benefits, but also issues throughout the process.


  • “Joint financial obligations, including the initial payment, regular home loan payments, real estate tax and preservation costs.”
  • Enhanced buying power, potentially enabling you to obtain a larger or more attractive piece of real estate than you would be able to purchase by yourself.
  • The strategic investment opportunity provides the possibility of constructing equity and potentially making money from the property’s appreciation over time.
  • The duties of homeownership are distributed among all the home occupants. These include day-to-day maintenance and the problem-solving and decision-making associated with replacement, repair, and improvement.


  • Achieving agreement on multiple decisions, such as selecting an appropriate site, determining its intended use, and agreeing on how it will be managed, can be a breeding ground for disputes.
  • The financial stability of each party contributes to the solvency of the partnership, and potential losses, or deep personal divisions can result when one party falls on hard times.
  • Sharing living space with friends or co-managing a property can pose challenges to relationships. Issues may arise from disagreements over how much money each person should contribute, the way individual properties are being used, and the way property improvements are being planned.
  • Sharing the responsibility for the mortgage could complicate future financial activities and create difficulty in selling the property or a share of it.

Considerations for purchasing a home with friends

Acquiring a residence with companions constitutes an immense pledge for which anticipation and planning are a necessity. To warrant the prosperity and pleasure of the whole band of collaborators who’ve contributed so far and intend to match the effort given in future endeavours, there is a medley of crucial considerations on offer.

  1. When it comes to finances, the first thing you want to consider is the financial stability of your partner. Sparking a conversation to openly discuss each of your financial situations may feel uncomfortable at first, but it can ultimately save you from financial stress and conflict further down the line. Start by sharing your credit scores with each other; they can have a direct impact on how far you can go as a couple, whether it’s obtaining a mortgage or even getting an apartment rental. 

Also, remember that having a high credit score alone doesn’t define you as a financially responsible person. Knowing each other’s debt levels, income, and savings will give you a much better overall picture, and can help determine whether you feel comfortable sharing ongoing expenses in the future.

  1. Determining Who Owns the Property: Choose between joint ownership, with the right of survivorship, or separate ownership. Talk to a real estate attorney to write a paper, concerning, how the property will be divided, financial contributions, and strategies for leaving.
  1. Mortgage Impact: All co-buyers financial information will be reviewed by lenders, which may affect the group’s ability to get a mortgage or influence the terms of the loan. Moreover, jointly owning property can affect an individual’s access to future loans.
  1. Item four concerns how roommates will get along. You need to work out how you are going to handle problems. Also, think about how long you want to live in the place. You should also figure out how someone can move out of the place if someone wants to leave.
  1. Real Estate Administration: Ascertain if the real estate is the primary abode for all possessors, an investment to lease, or a holiday home. Assign obligations for day-to-day supervision, conservation tasks, and management procedures.

In case you and some companions are thinking about purchasing a home together, call Rivers Real Estate now, one of the best Canadian real estate firms. Our veteran representatives will provide you with the necessary support and information, walking you through every stage of co-buying and supplying you with all the essential details critical for an operation of such a magnitude.

We know the road to owning your own home can be a steep one, especially if it’s your first time, so we’re ready to think beyond traditional means to help you make it happen.

Our agents possess the expertise and understanding to help guide you through the co-ownership journey, from locating the ideal property to creating legal documents and acquiring financial services. We will maintain close communication with you and your companions to guarantee that all necessitates and aspirations are taken care of and that the journey is as stressless and seamless as possible.
Don’t allow the difficulties of the housing market to hinder your ability to reach your goal of owning a home. Instead of letting the obstacles stop you, reach out to Rivers Real Estate. By calling us today, you will be taking the first step toward making your homeownership dreams a reality catered to you and the companions with whom you want to share it.