Yes. Two friends or siblings can buy a home together in Ontario, each use their own FHSA and Home Buyers' Plan, and share the mortgage. The keys are choosing how you hold title, signing a co-ownership agreement before you buy, and writing the exit plan while you still like each other.
Done right, it can cut years off your wait. Done on a handshake, it can cost you a friendship and a lot of money.
Why buying with a friend works
The hardest part of buying a first home is the down payment. Two people can build it twice as fast.
- Two FHSAs. Each of you can put in $8,000 a year, up to $40,000 each, tax-free for your first home.
- Two Home Buyers' Plans. Each of you can take up to $60,000 from your own RRSPs.
- Two incomes. The lender looks at both, so together you can qualify for more than either of you alone.
If you are both first-time buyers, you can also claim Ontario's land transfer tax refund of up to $4,000. If one of you has owned before, the refund shrinks in line with that person's share.
The smart version: a duplex
Here is a version a lot of people miss. Buy a home with two or three units. One of you lives upstairs, the other lives downstairs. Each of you has your own kitchen, your own door and your own space. You still split one mortgage.
Or live together in one unit and rent out the other. Now a tenant's rent helps pay the mortgage for both of you. On an owner-occupied two-unit home, the minimum down payment is the same as a regular house: 5% on the first $500,000. On three or four units, it is at least 10%.
Lenders treat two-owner, two-unit homes in different ways, so ask yours early. More on how this works in Hamilton: the Hamilton House Hack Starter Kit.
How title works: two choices
When two people buy together, the deed says how you own it. In Ontario there are two ways.
Joint tenancy. You own it equally, 50/50. If one of you dies, the other automatically owns the whole thing. Couples often choose this.
Tenants in common. Your shares can be unequal, like 60/40 if one of you put in more. If one of you dies, that share goes to their estate, not to the other owner. Friends and siblings often choose this.
Ontario law treats co-owners as tenants in common unless the deed clearly says joint tenants. Either way, talk it through with your lawyer and make sure the deed says what you mean. Then both of you update your wills.
The mortgage is shared, fully
This is the part people underestimate. On a joint mortgage, each of you is responsible for the whole payment, not your half. If your friend stops paying, the lender can come to you for all of it.
So pick someone whose money habits you know. Before you shop, sit down and share your credit scores, your debts and your savings. If that talk feels awkward, buying a home together will feel worse.
What goes in your co-ownership agreement
A co-ownership agreement is a contract between the owners. A lawyer writes it, and you both sign it before you buy. It covers what the deed and the mortgage don't. At a minimum, it should answer these:
- Who put in what. Each person's down payment, so it is clear if you sell.
- Who pays what each month. Mortgage, taxes, insurance, utilities, and repairs.
- Who lives where. Which unit or which rooms, and whether partners can move in.
- Big decisions. Renovations, renting out space, refinancing. Do both of you have to agree?
- If someone can't pay. How long they get to catch up, and what happens after that.
- If someone wants out. The other owner's right to buy them out first, how the price is set (an appraisal, for example), and how long they have to arrange it.
- If someone dies or gets sick. Life and disability insurance, and what the estate can do with the share.
- Disputes. Whether you use mediation before anyone goes to court.
Plan the exit on day one
Every co-ownership ends. One of you meets someone, moves for work, or wants to buy on their own. That is normal. It only becomes a fight when nobody planned for it.
Here is the backstop most people don't know: in Ontario, any co-owner can ask a court to order the property sold or divided. Nobody wants it to get there. A clear buyout clause in your agreement means you probably never will.
A simple exit plan answers three questions. How do we set the price? Who gets the first chance to buy? How long do they have? Write the answers down while you are both happy.
Picture two sisters renting separate apartments across Hamilton, each paying close to $1,800 a month for a place they will never own. They buy a duplex together instead: one upstairs, one down, each owning half as tenants in common. Their co-ownership agreement says what happens if one wants out: the other gets the first chance to buy her share at an appraised price. Three years later one moves for work. Because they wrote it down on day one, it is a conversation over coffee, not a fight.
Buying with a sibling
The rules are the same for a brother or sister as for a friend. The feelings are not.
With family, it is easier to skip the hard talk because you trust each other. That is exactly why the agreement matters more. Holidays get awkward fast when one sibling wants to sell and the other doesn't.
If your parents are helping one or both of you, write down whose money went in and whether it was a gift to one of you or to both. Ten minutes of clarity now saves years of "but Mom paid for that."
Is it right for you?
Buying with a friend works best when:
- You have known each other a long time and have handled money together before.
- You both plan to stay put for at least a few years.
- You are both willing to sign an agreement, not just shake hands.
If that sounds like you, it can be the fastest way to stop renting. Start with the first-home basics here: the First Home Money Map. Or grab the general house hack starter kit: the House Hack Starter Kit.
Before you buy, each of you should talk to a mortgage professional, and get a real estate lawyer to write the co-ownership agreement, ideally with each of you getting your own advice on it.
Common questions
Can two friends both use an FHSA and the Home Buyers' Plan for the same home?
Yes, if each of you qualifies as a first-time buyer. The FHSA and the HBP are per person, so two buyers can each use their own for the same home.
What is the difference between joint tenancy and tenants in common?
Joint tenants own equal shares, and when one dies their share passes to the other owner. Tenants in common can own unequal shares, and each share goes to that owner's estate. In Ontario, co-owners are tenants in common unless the deed clearly says otherwise.
What happens if my friend can't pay their share of the mortgage?
On a joint mortgage, each borrower is responsible for the whole payment, not half. Your co-ownership agreement should say what happens next, such as a catch-up period, a buyout or a sale.
What if one of us wants to sell and the other doesn't?
Your co-ownership agreement should set out a buyout first, then a sale. Without one, any co-owner can ask an Ontario court to order the property sold or divided.