A real estate lawyer and mortgage broker sound in on the basics of co-ownership
On July 1, the Canada Mortgage and Housing Corp (CMHC) changed the rules around mortgage insurance, making it more difficult for some would-be buyers to qualify for a CMHC-backed loan. And despite the early impact of COVID-19 on housing values, prices bounced back in May and June and remain relatively high. According to a recent Canadian Real Estate Association report, homes in Canada sold for an average of almost $539,000 in June, and of course much more in cities like Toronto and Vancouver.
It’s no wonder some Canadians are considering co-ownership to get into the market or move into a more desirable property or location. But if living with family can be complicated, co-buying with an unrelated party (a friend, for example) is even more complex and could benefit from expert guidance.