Secure Financing

Financing Your Co-ownership Property

Once you have made the decision to co-own and have found partners who share your vision, it’s time to find a lender. This part of the process may take a bit of work but rest assured, it can be done!

Individuals pursuing a mortgage for a co-owned property follow the same steps as those seeking a standard mortgage. The banks consider the same information including credit scores, income, Gross Debt Service ratios and Total Debt Service ratios.

Although there is no formal difference in the process of obtaining financing for co-owners, banks are often hesitant to lend for co-owned properties, especially if there are more than four parties involved. Banks are reluctant because cooperative purchasing is still not very popular in Canada, but we hope that as it becomes more well-known, securing financing will be easier.

It may be difficult to obtain financing, but working with a mortgage broker who has experience with co-ownership will help to make the process easier. Mortgage brokers will negotiate with the conventional banks, monoline lenders and alternative lenders to secure the best mortgage products and rates for you. It is essential to meet with them to discuss and understand the specific benefits of any mortgage products so you can make an informed decision about what is best for you.

When working with a mortgage broker you may have difficulty securing a pre-approval due to lender hesitance, but you should be able to obtain commitment to a rate hold for a specified period of time. It would, therefore, be wise to make any offers contingent on financing approval as well as a home inspection, which can save you significant costs for unexpected foundational work.

Explore the resources below for more information on financing. We’d also be happy to refer you to a mortgage broker who specializes in home co-ownership.

General Information

• Mortgage information from the Government of Canada.
• Mortgage insurance information from the Canada Mortgage and Housing Corporation.
• Information for first time homebuyers from RateHub

How much can you afford?

• RateHub: 'How Much Can I Afford?'
• RBC Bank Mortgage Affordability Calculator.

Explore different mortgage product features

• Lesley's Mortgage's 'Ultimate Mortgage Homebuyer's Tool Box'
• MCAP Mortgages
• TD Bank Mortgages
• Bank of Montreal Mortgages
• Manulife One Mortgages

With financing in place, you can now search for a property that aligns with your shared goals and budget. Start exploring co-ownership listings that meet your criteria and fit your financial plan.

Still intrigued by co-ownership? Further details await in the rest of our Beginner's Guide:

1. What is Co-Ownership?
2. Get Started with Co-Ownership
3. Find Co-Ownership Partners
4. Establishing Your Terms
5. Secure Financing
6. Finding Co-Ownership Property
7. Establish Your Co-Ownership Agreement
8. Setting Yourself Up for Success