Rising Home Prices Drive Canadians to Explore Co Ownership Solutions for Affordability
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A recent report reveals that increasing home prices and interest rates in Canada have prompted more Canadians to explore co-ownership as a solution to affordability challenges. The survey, conducted among 501 Canadian homeowners who share their property with someone other than their spouse, found that 89 percent of them have chosen to co-own their homes with family members, 7 percent with friends, and 8 percent with non-relatives.
The COVID-19 pandemic's ongoing influence has played a significant role in fostering this trend, with Canadians continuing to explore co-ownership arrangements even as social distancing restrictions have eased. Real estate professionals across Canada have also noted the growing popularity of co-purchasing properties, with 23 percent observing a moderate increase in such arrangements compared to pre-pandemic times.
Financial considerations are a driving factor behind co-ownership, with home prices, interest rates, and mortgage qualifications becoming more challenging. Canadians are pooling their resources, combining buying power with family members, friends, or others to enter the housing market. Affordability is a key motivator for three-quarters of co-owners, particularly among those aged 25 to 34, and co-ownership helps boost borrowing capacity and lower monthly mortgage costs. The report emphasizes the importance of thorough conversations covering financial, legal, and personal aspects when considering co-ownership.
Read the full article on: REAL ESTATE MAGAZINE
