Buying a Home with Parents — What to Know Before You Sign

Why Families Are Buying Together in 2025

The numbers don’t lie.

Home prices in the Greater Toronto Area (GTA) continue to rise. The average detached home now sits around $1.4 million. At the same time, younger buyers face high student debt and limited wage growth. Older parents hold equity but often need support as they age.

Buying a home with parents isn’t rare anymore. It’s practical.

Multigenerational households are increasing. According to Statistics Canada, nearly one in ten households now include at least three generations under one roof. Shared ownership offers cost savings, caregiving options, and long-term stability.

Toronto, Mississauga, Brampton, and Vaughan are seeing this trend grow fast.

Want to live in the GTA without overextending yourself? Buying a home with parents might be your path forward.

Why the GTA Still Attracts Buyers

The GTA offers:

• Strong job markets in tech, finance, and healthcare

• Access to top-ranked universities

• Diverse cultural communities

• Public transit and major infrastructure

• High resale value and long-term property growth

From downtown condos to suburban duplexes, housing in the GTA remains one of Canada’s strongest long-term investments.
Source: Toronto Regional Real Estate Board

But First — Talk About the Hard Stuff

Money changes things.

When parents and adult children buy a home together, you need full clarity. What looks like teamwork on paper often becomes tension over time.

Ask each other:

• Who is on the mortgage?

• Who puts in the down payment?

• What percentage does each person own?

• What happens if someone wants to sell or refinance?

You need answers before the offer.

Write a Co-Ownership Agreement

Legal agreements protect your relationship and your investment.

A co-ownership agreement defines:

• Ownership percentages

• Exit clauses

• Monthly payment responsibilities

• Renovation decisions

• Dispute resolution process

Your lawyer will guide you through this. Use a lawyer who specializes in family co-ownership.

Get started with information from CoBuy Canada, a resource for buyers planning shared purchases.

Choose the Right Title Type

You have two main legal options:

Joint Tenancy

• Equal ownership

• Automatic right of survivorship

• If one person dies, the other inherits the share

Tenants in Common

• Unequal ownership allowed

• Each person can will or sell their share

• Flexible but requires clear paperwork

Tenants in common gives you more control. But it requires careful planning.

Talk About Living Arrangements

Ownership is one part. Lifestyle is another.

You need to discuss:

• Who lives where

• Renovation plans

• Who pays for what

• Caregiving responsibilities

• Rules around guests, pets, or roommates

Some buyers add separate entrances or convert homes into legal duplexes to maintain privacy. Speak to a local contractor or city planner about what’s allowed in your area.

Plan for What Happens Next

No one wants to think about breakups, health changes, or death. But you need to.

Build your exit strategy:

• Set timelines for review

• Define what triggers a sale

• Create a buyout formula

• Decide how disputes are handled

Get this in writing. It protects everyone, including future spouses, children, or estate heirs.

Tax and Mortgage Considerations

Buying a home with parents affects your mortgage and tax situation.

Lenders will look at all incomes and debts. One co-owner with bad credit can impact the whole deal. Consider co-signing alternatives if you need help qualifying but don’t want to share ownership.

Some tax credits like the First-Time Home Buyer’s Tax Credit or RRSP Home Buyers’ Plan only apply if neither buyer owned a home before.
Learn more here

Always consult a tax professional before signing.

True Stories from the GTA

At LifestyleVideos.com, we filmed real families navigating this journey. You’ll see how:

• One family in North York converted a bungalow into two self-contained units

• A parent-child duo in Milton created a 10-year co-ownership plan with built-in buyout triggers

• A Brampton family of five bought a home with a basement suite to accommodate aging parents and adult kids under one roof

These short films highlight what works — and what to avoid. See their spaces. Hear their stories. Then decide what’s right for you.

Ready to Buy Together?

Buying a home with parents takes strategy, paperwork, and trust. Done right, it builds equity and strengthens family bonds.

Done without planning, it creates stress and financial risk.

Need help navigating co-ownership in the GTA?

Visit LifestyleVideos.com to connect with experienced real estate professionals who understand your unique needs. Watch our exclusive feature video showcasing innovative multigenerational living solutions across Toronto and surrounding areas.