Dec 11, 2025
Heidi Turner and her best friend have shared a lot over the years, including the dream of home ownership.
They made that dream a reality 15 years ago, as the two teamed up to buy a home together, rather than waiting to save up for a down payment individually or marrying a life partner.
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Heidi says their shared home ownership has worked out well for a lot of the same reasons the best marriages are successful.
“We knew each other well and had conversations that many people avoid — even in marriages,” she told Business Insider.
It’s important to start those conversations and explore the pros of cons of joint homeownership with a friend before making any rash decisions.
The pros and cons of buying a home with a friend
Fifteen years ago, when Heidi and her friend purchased their home, the average house price in the Greater Toronto Area was just over $431,463 (1). Today, that figure is much higher, more than double actually, at $1,039,458 as of November 2025, according to recent Wowa data (2).
With prices rising faster than incomes, the dream of buying a first home has become more out of reach, particularly for younger Canadians.
According to the Canadian Real Estate Association, the average home price climbed roughly 75% between 2014 and 2024 (3), while median net incomes only rose approximately 33.5% over the same time period (4). As a result, the average age of the first-time home buyer in Canada has risen to 40, compared to 36 in 2014 (5).
These statistics may make co-buying a viable path to homeownership for single young people dealing with stagnant wages and a cost of living crisis. But like any major decision, it comes with both advantages and drawbacks.
As Heidi put it: “We didn’t go into this situation blindly.”
Upsides of shared home ownership
Pooling income and savings means it’s easier to own a home earlier in life and start building home equity. Instead of paying rent, you’re both investing in a shared asset.
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You can get more space for less, as joint buyers can often afford a larger property or a better location than they could alone.
Challenges of shared home ownership
If one person loses a job or stops paying the mortgage, the other is still on the hook for the mortgage payments.
Just as with roommates, lifestyle differences can clash — from furniture choices to entertaining habits and personal preferences.
Life events can sometimes get in the way. Marriage, career moves or financial changes can create friction if there’s no plan in place.
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Protect yourself if you plan to buy a home with a friend
Buying property with a friend requires getting clear on a number of things — through discussions and in legal agreements — before and after the purchase.
Consider the following scenarios with your friend before taking the property plunge.
- If one partner marries. Heidi and her friend agree they’ll sign prenuptial agreements if they marry to make sure the house is kept out of any marital assets, ensuring no spouse could force a sale. Future-proofing arrangements like this can prevent legal headaches later.
- If one partner wants out. One of you may want to cash out or relocate. It’s smart to spell out whether the other owner has the right to buy out their share or how the property will be listed and sold.
- If a partner dies. Heidi and her friend have agreed that if one of them passes away, the other will inherit the home directly, bypassing their estates. Without a legal plan like this, surviving partners can face disputes with family members.
- If partners clash. Disagreements will happen. Heidi says she’s an extrovert who loves hosting dinner parties, while her friend prefers a quieter home. Heidi solved this by planning social events while her friend travels, striking a balance that works for both.
Get it in writing
Talking through these scenarios is one thing, but documenting them is what truly protects you. To make sure you and your cobuyer are covered, take these steps:
- Write a cohabitation or co-ownership agreement. This outlines how you and your co-owner will split costs, make decisions and proceed if one party wants out.
- Clarify title ownership. Decide whether to hold the property as joint tenants with rights of survivorship, or tenants in common so each can pass their share to someone else.
- Prepare an exit strategy if one partner wants out. Put down in writing how you’ll handle a sale, buyout or refinancing, if needed.
- Make sure you both consider the home in your estate planning. Ensure your wishes are legally enforceable. If you want the home to pass to your friend, consider setting up joint tenancy with right of survivorship (legal in every province except Quebec).
Bottom line
Heidi and her best friend show that there’s no single path to homeownership. With honest and frequent conversations as well as the right legal protections, buying with a friend can offer stability and opportunity that might otherwise feel out of reach.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Toronto Real Estate Board (1); Wowa (2); Canadian Real Estate Association (3); Statistics Canada (4); Ontario Housing Market (5)
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Danielle is a personal finance writer whose work has appeared in publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love. She’s especially passionate about helping families and kids learn smart money habits early.
