Buying a home in the GTA is one of the largest financial decisions most people make — and doing it with another person adds a layer of legal, financial, and practical complexity that buyers often underestimate. Whether you're buying with a partner, spouse, family member, or friend, understanding how co-ownership works in Ontario is essential before you sign anything. Two people can absolutely buy a home together in Ontario, and it's very common. But the way you structure ownership matters more than most buyers realize.
The Two Legal Ways Two People Can Own a Home Together in Ontario
When two people buy a home together in Ontario, the property title can be structured in one of two ways: joint tenancy or tenancy in common. These are legal terms for how ownership is held, and they determine what happens to each person's share if one owner dies, wants to sell, or needs to exit the arrangement.
Joint Tenancy
In a joint tenancy, both owners hold an equal, undivided share of the property. The key feature of joint tenancy is the right of survivorship: if one owner dies, their share automatically passes to the surviving owner — bypassing the estate and any will. Joint tenancy cannot be unequal (50/50 only) and requires simultaneous acquisition of the interest.
Joint tenancy is the typical structure for married couples and common-law partners. It provides simplicity in the event of death and avoids the cost and delay of probate. The main drawback: either owner can sever the joint tenancy unilaterally, converting it to a tenancy in common without the other person's consent — though this requires formal legal steps.
Tenancy in Common
In a tenancy in common, two people buy a home together but each holds a specified, separately transferable share of ownership. The shares don't have to be equal — one person can own 70% and the other 30%, or any other division you agree on. Each owner can sell, mortgage, or will their share independently.
Tenancy in common is common among friends, family members who aren't spouses, or buyers who contribute unequal down payments and want ownership to reflect that. There's no right of survivorship: if one owner dies, their share goes to their estate and is distributed according to their will — not automatically to the co-owner.
| Feature | Joint Tenancy | Tenancy in Common |
|---|---|---|
| Ownership shares | Always equal (50/50) | Any split (40/60, 70/30, etc.) |
| Right of survivorship | Yes — passes to co-owner | No — passes to estate |
| Can sell/will own share | No (without severing) | Yes |
| Typical use | Married/common-law couples | Friends, family, unequal contributors |
Do You Both Need to Qualify for the Mortgage?
When two people buy a home together and both names are on the mortgage, both incomes are used for qualification — which typically allows you to qualify for a larger mortgage. Both credit scores are also reviewed: the lender usually uses the lower of the two scores as the qualifying score. If one person has weak credit, this can limit your options or push you toward a higher rate.
It's possible for both buyers to be on title but only one on the mortgage (or vice versa), but this is structurally complex. Most buyers with two incomes want both on the mortgage to maximize borrowing power. Discuss the arrangement with your mortgage broker before deciding how to structure it.
What Happens If One Person Wants to Sell?
This is where many co-ownership arrangements run into problems. If two people buy a home together and one wants to sell while the other doesn't, there's no simple solution. Options include:
- Buyout: One party buys out the other's share, which requires new financing to remove the departing owner from the mortgage and title
- Agreed sale: Both parties agree to sell the property and split the proceeds
- Partition: If no agreement is reached, either owner can apply to Ontario's court for a partition order, forcing the sale of the property — a costly and time-consuming process
The best protection against a difficult exit is a co-ownership agreement drafted before purchase — a legal contract that spells out what happens if one person wants out, how a sale price is agreed upon, and what the buyout process looks like. Without one, you're relying on goodwill and potentially expensive litigation.
The Co-Ownership Agreement
When two people buy a home together in Ontario — whether spouses, partners, friends, or family — a co-ownership agreement is strongly recommended. This is a private legal contract between the parties that governs:
- Ownership shares and how they were calculated
- How ongoing costs (mortgage, property taxes, maintenance) are split
- Process and timelines for selling or buying out the other party
- What happens if one party can't make their share of the mortgage payments
- Decision-making authority for significant repairs or improvements
- What happens on death, disability, or major life change
A real estate lawyer in Ontario can draft a co-ownership agreement. Costs vary but typically run $500–$2,000 depending on complexity. It's worth every dollar — disputes over jointly owned property in Ontario can cost significantly more to resolve in court.
Land Transfer Tax When Two People Buy a Home Together
Both Ontario Land Transfer Tax and Toronto's Municipal Land Transfer Tax (for Toronto purchases) are calculated on the total purchase price — not split between buyers. Both taxes are the buyer's responsibility regardless of how many people are on title. If both buyers are first-time buyers in Ontario, each may qualify for their own First-Time Home Buyer Land Transfer Tax Refund.
In Ontario, the first-time buyer refund is up to $4,000 per person on provincial LTT. In Toronto, the refund is up to $4,475 per person on the municipal LTT. If only one of the two buyers is a first-time buyer, only that person's portion of the refund is available. Your real estate lawyer applies the refund correctly at closing.
For more detail on what buying a home involves financially, see our guide to what closing costs home buyers pay and how much land transfer tax costs in Ontario.
FAQ
Can an unmarried couple buy a home together in Ontario?
Yes. Ontario law doesn't require buyers to be married or related to purchase property together. Unmarried couples buying a home together should have a co-ownership agreement in addition to deciding on joint tenancy vs. tenancy in common, as family law protections for common-law partners around real property differ from those for married couples.
What credit score do we need when two people buy a home together?
Most lenders use the lower of the two credit scores for qualification. For insured mortgages (CMHC), the minimum credit score is 600, but lenders typically prefer 680+. If one buyer has a significantly lower score, consider whether it's better to apply solo (using only the stronger applicant's income) or jointly. A mortgage broker can model both scenarios.
Can two people buy a home together if one already owns property?
Yes. There's no rule preventing someone who already owns property from co-purchasing another. However, the existing property owner won't qualify for first-time buyer benefits, and they may have additional land transfer tax considerations depending on what they already own. The other buyer's first-time buyer status is unaffected.
Do both people need to be on the mortgage when buying together in Ontario?
No. It's possible for one person to be on the mortgage and both on title, or both on the mortgage but only one on title. However, being on title without being on the mortgage creates risk — if the mortgage defaults, the person on title can lose the property even though they're not responsible for payments. Most buyers structure ownership and mortgage in the same way.
What happens to the jointly owned home if one person dies?
It depends on how title is held. Joint tenancy: the surviving owner inherits the deceased's share automatically through right of survivorship. Tenancy in common: the deceased's share goes to their estate and is distributed according to their will. For this reason, many couples prefer joint tenancy, while non-spousal co-owners often use tenancy in common with corresponding wills in place.
If you're buying together and wondering what the overall process looks like, read our complete guide to the steps to buying a home in the GTA. Or if you're weighing whether buying now is right for you, see is now a good time to buy a home in the GTA.