selling condo toronto

The provincial government released a guide for co-owning a home in which they argue that sharing a home with other, non-related owners can be a good way to get into an expensive housing market (ahem… Toronto). https://www.cbc.ca/news/canada/toronto/ontario-co-ownership-guide-1.5392414

Besides the laughable notion that simply publishing a report will tackle Toronto’s affordability problem, this report misses the mark.  Unless you form a corporation (and then therefore pay much higher interest rates on your mortgage) you are basically marrying someone else financially. You are signing up for the worst part of marriage. All the money arguments with none of the love.   What if you want to move out and they don’t? What if they loose their job and can’t make payments? This report suggests that you create a contact with your co-owners to help you navigate these disputes. A contract, like a prenup, can help in retrospect if you end up in court but it won’t do much to help you in the moment.

We have always advised clients that co-owning a house with non-family puts you in a very vulnerable financial situation. We’ve have seen it done really, really well but have also seen it fall apart and become very messy.
Co-ownership can be a good option for some buyers but it is not an acceptable government strategy to tackle housing affordability. The government is asking first time home buyers, a financially vulnerable group already, to enter into a relationship that is not regulated and in which neither side is protected. The ownership type between friends and spouses is slightly different (tenants-in-common vs. joint tenants) but not different enough to erase problems if and when they arrive.
We need a systemic strategy on housing affordability. Solution? Build more transit! The price disparity between neighbourhoods that are connected and those that aren’t is staggering. Getting this whole city connected to downtown and increasing density in low-density neighbourhoods will be a much more positive change than a few families conjoining their financial futures.