Buying a Home With Friends or Family in Ontario (2027)

Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty

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By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 9 min read — How co-ownership works in Ontario in 2027: title choices, shared mortgage numbers, first-time buyer rules and what to put in writing.

Short answer

Yes, friends and family can buy together in Ontario. Most hold title as tenants in common, each sign the mortgage, and qualify on combined income at the higher of 5.25% or their rate plus 2 points. Each buyer is liable for the whole loan, so sign a lawyer-drafted co-ownership agreement covering shares, costs and buyouts first.

This is for friends, siblings, parents and adult children who want to pool money to buy a home in Toronto or anywhere in the GTA in 2027. You will learn how title and mortgages work with more than one buyer, the real numbers on a shared purchase, which first-time buyer programs each person can use, and what to put in writing before you sign.

Can you buy a house with friends or family in Ontario?

Yes. Ontario law lets any number of adults own one property together. Lenders will also lend to more than one borrower on the same home. With GTA detached medians still near or above $1 million in many cities, pooling two incomes and two down payments is one of the few ways some buyers can get in.

The legal part is simple. The hard part is the human part: what happens when someone wants out, stops paying, gets married or moves for work. Most co-ownership problems I see come from things nobody wrote down. If you deal with those questions before you buy, co-owning can work well. I covered the basics in an earlier post on buying a home with a friend or family member. This guide goes further, with 2027 numbers.

Joint tenants or tenants in common: which should co-buyers choose?

When you buy, your lawyer registers how you hold title. There are two choices.

	Joint tenants	Tenants in common
Shares	Always equal	Can be unequal, such as 60/40
If one owner dies	The survivor automatically owns the whole home	The share passes through the owner’s will or estate
Probate on that share	Usually avoided on the first death	Can apply to the share in the estate
Typical buyers	Spouses and partners	Friends, siblings, parent and child investors

Source: general Ontario practice; Ontario Estate Administration Tax is $15 per $1,000 of estate value above $50,000. Confirm your choice with a real estate lawyer.

For friends and siblings, tenants in common is usually the better fit. It lets each person own a share that matches what they put in, and each person can leave their share to their own family. With joint tenancy, your share could go to your co-owner instead of your children. There is more detail in our guide to joint tenancy vs tenants in common.

How do lenders handle a mortgage with more than one buyer?

In most cases, every person on title must also be on the mortgage. Each borrower can be held responsible for the full debt, not just their share. If your co-owner stops paying, the lender can come to you for the whole payment, and a missed payment can hurt both credit files.

The lender adds up your incomes and your debts, then applies the stress test to the combined file. You must qualify at the higher of 5.25% or your contract rate plus 2 points. Here is an example with labelled assumptions, for two friends buying together:

Price: $900,000. That is close to the January to October 2026 median for a semi-detached home in Mississauga ($885,000), per TRREB MLS data via REALM.
Minimum down payment: 5% of the first $500,000 plus 10% of the rest, so $65,000.
Mortgage insurance: the loan of $835,000 is above 90% of the price, so the CMHC premium is 4.00%, or $33,400, added to the loan. Total mortgage: $868,400.
Example rate: 4.5% over 25 years. Payment: about $4,806 a month.
Stress test rate: 6.5%. Qualifying payment: about $5,817 a month.

Down payment	Mortgage	Payment at 4.5%	Qualifying payment at 6.5%	Each person’s half of the payment
Minimum ($65,000)	$868,400 incl. CMHC premium	$4,806	$5,817	$2,403
20% ($180,000)	$720,000, no insurance	$3,985	$4,823	$1,993

Source: my calculations, 25-year amortization, Canadian semi-annual compounding. Rate is an example only, not a quote. Down payment and CMHC rules as of November 2026.

Property tax, insurance, utilities and repairs come on top. Learn more about how lenders test you in our mortgage stress test guide.

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How do you split the down payment and costs fairly?

There is no single right split. What matters is that your shares on title, your contributions and your agreement all line up. Common set-ups:

Equal everything: 50/50 down payment, 50/50 monthly costs, 50/50 ownership. Simple, and works when incomes are similar.
Shares follow the down payment: one person puts in $39,000 and the other $26,000, so title is 60/40. Monthly costs are split 60/40 too.
Different shares, same monthly costs: possible, but you must write down how the extra down payment is credited when you sell.

Keep a shared record of every payment from the start. When a co-owner later pays for a new roof or furnace, the agreement should say whether that money comes back to them first on a sale.

What first-time buyer programs can co-buyers use?

Each program looks at each buyer separately. One buyer’s history can reduce a benefit for the group.

Program	Key 2026 rule	How co-buying affects it
Ontario land transfer tax refund	Up to $4,000 for first-time buyers	Reduced in proportion to the share owned by buyers who do not qualify
First Home Savings Account (FHSA)	$8,000 a year, $40,000 lifetime	Each eligible buyer uses their own account
Home Buyers’ Plan (HBP)	Up to $60,000 from your RRSP	You can only withdraw from your own RRSP

Source: Government of Ontario land transfer tax refund page; Canada Revenue Agency Home Buyers’ Plan pages; CIBC FHSA guide. As of November 2026.

Ontario’s own example makes the refund rule clear: a first-time buyer child who buys 50/50 with a parent who already owns a home can claim 50% of the refund. Each buyer who claims must move in within nine months, and you have 18 months after registration to apply. If a buyer’s spouse has owned a home while they were together, neither spouse gets the refund.

For the HBP, you count as a first-time buyer if you did not live in a home owned by you or your current spouse or partner in the current year or the four years before. Withdrawals made from 2026 to 2028 get a longer grace period before repayment starts. Our list of first-time home buyer programs in Ontario covers the rest.

What should a co-ownership agreement include?

A co-ownership agreement is a private contract between the owners, drafted by a lawyer. It is separate from the mortgage and the deed. It should cover:

Each person’s share and what they paid in at the start.
How the mortgage, tax, insurance, condo fees and repairs are split, and what happens if someone pays late.
Who lives where, and whether a non-resident owner gets rent.
How long everyone agrees to hold before anyone can force a sale.
How a buyout works: who sets the value, how the price is calculated and how long the buyer has to get financing.
What happens on marriage, a new partner moving in, job loss, illness or death.
How disputes are settled, such as mediation before court.

Watch out

Being on the mortgage means you are on the hook for all of it. If your co-owner loses their job, you may have to cover the full payment to protect both credit files and the home. Before you buy, make sure each of you could carry the payment alone for a few months, and keep an emergency fund.

What happens if one co-owner wants to sell?

Without an agreement, a co-owner who wants out can apply to court under Ontario’s Partition Act for the home to be split or sold. Courts generally treat a co-owner’s wish to sell as a right, and the owner resisting the sale has to show a strong reason, such as malice or oppression. That process is slow and expensive for everyone. Our post on what to do when a co-owner won’t sell explains the steps.

A buyout clause is the better path. Here is a simple example: the home appraises at $1,000,000 and $800,000 is left on the mortgage. Equity is $200,000. A 40% owner would get $80,000, less their share of agreed costs, and the remaining owner must refinance to remove them from the loan. That refinance means passing the stress test alone, so plan for it early.

Buying with parents: on title, co-signer or gift?

Parents usually help in one of three ways:

Gift: the parent gives money and is not on title or the mortgage. Simplest for the child. Our guide to a gifted down payment and gift letter covers the paperwork.
Co-signer on the mortgage: the parent’s income helps you qualify. The parent is liable for the debt.
Co-owner on title: the parent owns a share. This can reduce the child’s land transfer tax refund, as above, and can affect each owner’s taxes when the home sells.

Tax on a sale depends on each owner’s own situation, including whether they live there. A parent who owns a share of a child’s home but lives elsewhere should get tax advice before buying.

My take

Co-buying works best when everyone treats it like a business deal first and a friendship second. Hold title as tenants in common unless you are spouses, sign a co-ownership agreement before you firm up an offer, and agree on a minimum hold period, such as five years. I also ask co-buyers to agree on a price range together before we start viewing, so nobody falls in love with a home the group cannot carry.

What to do next

Each buyer gets their own credit report and lists their savings, debts and income.
Meet a mortgage professional together to get pre-approved on the combined file at the stress-test rate.
Check which buyers qualify for the FHSA, HBP and land transfer tax refund, and plan the shares around that.
Have a real estate lawyer draft a co-ownership agreement before you make an offer.
Agree on how you will hold title, and confirm it with the lawyer before closing.

Need help with this? Talk to me.

I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].

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Frequently asked questions

Can I buy a house with a friend in Ontario?

Yes. In Ontario, two or more adults can own one home together, usually as tenants in common so each person owns a set share. Both friends normally sign the mortgage and qualify on combined income under the stress test. In 2027, a written co-ownership agreement drafted by a lawyer is the most important step before you buy.

Do I need a co-ownership agreement in Ontario?

It is not legally required, but you should have one. Without it, a co-owner who wants out can apply under Ontario’s Partition Act to force a sale. A co-ownership agreement sets each person’s share, how costs are split, buyout terms, a minimum hold period, and what happens on marriage, job loss or death. A real estate lawyer should draft it.

Is it better to be joint tenants or tenants in common with a friend?

For friends and siblings in Ontario, tenants in common is usually better. It allows unequal shares, like 60/40, and each owner’s share passes through their own will. With joint tenancy, shares are equal and the survivor automatically gets the whole home, which can leave your own family out. Spouses more often choose joint tenancy.

Who is responsible for the mortgage if my co-owner stops paying?

You are. When two or more people sign a mortgage in Ontario, each borrower can be held liable for the full debt, not just their share. If your co-owner stops paying, the lender can ask you for the whole payment, and missed payments can damage both credit files. Keep an emergency fund to cover a few months alone.

Can two people use their FHSA to buy the same house?

Yes, each eligible buyer uses their own First Home Savings Account. In 2026 the FHSA allows $8,000 of contributions a year up to $40,000 over a lifetime. Each co-buyer must meet the first-time buyer rules on their own. The FHSA can also be combined with the Home Buyers’ Plan, which allows up to $60,000 from your own RRSP.

Do I get the land transfer tax refund if my co-buyer is not a first-time buyer?

Partly. Ontario reduces the first-time buyer land transfer tax refund, up to $4,000, in proportion to the share owned by buyers who do not qualify. A first-time buyer child who buys 50/50 with a parent who owns a home gets 50% of the refund. You must move in within nine months and apply within 18 months of registration.

How much do two people need to buy a $900,000 house in the GTA?

At least $65,000 down, or $32,500 each if split equally. That is the 2026 minimum: 5% of the first $500,000 plus 10% of the rest. The 4.00% CMHC premium of $33,400 is added to the loan. At an example 4.5% rate over 25 years, payments are about $4,806 a month, and you qualify at 6.5%.

What happens if a co-owner dies in Ontario?

It depends on how you hold title. With joint tenancy, the surviving owner automatically owns the whole home. With tenancy in common, the deceased owner’s share goes to their estate under their will, and Ontario’s estate administration tax of 1.5% on value above $50,000 can apply. Co-buyers should each have a will that matches the co-ownership agreement.

Can a co-owner force the sale of a house in Ontario?

Generally yes. Under Ontario’s Partition Act, a co-owner can ask the court to order the home split or sold, and courts usually allow a sale unless the other owner shows a strong reason, such as malice or oppression. A buyout clause and minimum hold period in a co-ownership agreement can avoid court.

Buying a Home With Friends or Family in Ontario (2027): How Co-Ownership Works