0%
Buy a home with a co-owner — family member, friend, or partner — and share the equity, the responsibility, and the reward.
Co-ownership is a realistic way into the market when one income will not stretch. The financing is straightforward; it is the agreement between owners that needs care.
All incomes are counted, and so are all debts. Two buyers with modest salaries and no car loans can outqualify one high earner carrying a lease and a line of credit. The combined down payment usually matters even more than the combined income.
Everyone on title is jointly and severally liable. That means each borrower is responsible for the entire payment, not their share of it. If one person stops paying, the lender pursues the other, and the missed payment lands on both credit files.
Joint tenancy means equal shares with a right of survivorship: if one owner dies, their share passes automatically to the other. It suits spouses and long-term partners.
Tenants in common allows unequal shares, say 60/40 to reflect different down payments, and each share passes through that owner's will. For friends, siblings and parent-child purchases, this is almost always the right structure.
Put it in writing with a lawyer before closing, while everyone is still friendly. The agreement should record who contributed what, how the monthly costs are split, who occupies which space and what happens when someone wants out.
The exit clause is the one that saves relationships. A common approach is a right of first refusal: the departing owner must offer their share to the other at an appraised value, with a set number of days to complete the buyout before the property goes to market.
Parents often help by going on title and on the mortgage. It works, but it has consequences worth knowing. The property is no longer the parents' principal residence, so their share may attract capital gains tax on sale, and the mortgage counts against their own borrowing capacity.
The alternatives are a gifted down payment, or a co-signer arrangement where the parent guarantees the mortgage without appearing on title. Each carries different tax and legal outcomes, and we will walk through all three before you decide.
Unlike bank employees who work for one lender, mortgage brokers work for your clients. We're licensed professionals with a legal duty to find you the best solution—not push a particular product.
Get Started