Buying a Home With Family or Friends: Mortgage Tips for 2026

As housing affordability remains a challenge, more Canadians are choosing to buy a home with family members or friends. In 2026, co-buying is a practical way to combine income, increase purchasing power, and enter the housing market sooner. However, shared ownership also comes with legal, financial, and mortgage considerations that buyers must plan for carefully.

Why Co-Buying Is Growing in Popularity

Buying with others allows:

• Combined incomes to qualify for a larger mortgage

• Shared down payment and closing costs

• Reduced individual financial pressure

For first-time buyers and multigenerational families, co-buying can be a powerful solution.

How Mortgage Qualification Works for Co-Buyers

When multiple people apply together, lenders assess:

• Total household income

• Combined debt obligations

• Credit profiles of all applicants

The lowest credit score among applicants can affect pricing and approval, so alignment is important.

Ownership Structures to Consider

Before applying for a mortgage, decide how ownership will be registered:

• Joint Tenants: Equal ownership with right of survivorship

• Tenants in Common: Unequal ownership shares, no survivorship

Legal advice is strongly recommended.

Down Payment and Contribution Planning

Co-buyers should clearly define:

• Who contributes what to the down payment

• How monthly payments are split

• Responsibility for maintenance and repairs

Documenting contributions helps prevent disputes later.

Legal Agreements Are Essential

A co-ownership agreement should outline:

• Exit strategies if someone wants to sell

• How equity gains or losses are shared

• What happens in case of death, separation, or financial hardship

These agreements protect all parties involved.

Mortgage Types and Terms for Co-Buyers

In 2026, many co-buyers choose:

• Fixed mortgages for payment stability

• Shorter terms for flexibility

• Mortgages with strong prepayment privileges

Choosing the right structure reduces long-term risk.

Risks to Be Aware Of

Potential risks include:

• Relationship strain

• Credit impact if one party misses payments

• Difficulty refinancing or selling without consensus

Open communication and planning are critical.

Tips for Successful Co-Buying in 2026

To improve success:

• Align financial goals upfront

• Keep finances transparent

• Maintain an emergency fund

• Work with experienced mortgage and legal professionals

Final Thoughts

Buying a home with family or friends in 2026 can make homeownership more accessible—but only with proper planning. By understanding mortgage qualification, ownership structures, and legal protections, co-buyers can build a solid foundation for shared success.