Co-Buying: What to Consider & What are the Rewards As more people seek creative ways to break into today’s real estate market, co-buying a home or condominium with a trusted partner—whether a friend, family member, or investment partner—has become an increasingly popular solution. Sharing ownership can make homeownership more accessible and allow buyers to ease into the market with shared financial responsibilities.
We’re breaking down what you need to consider before taking this step, as well as the potential rewards that come with co-ownership.
Understand Each Other’s Credit & Financial Health
Before entering into any formal agreement, it’s a good idea to exchange credit scores and understand each other’s financial history. Your credit reports will likely impact the mortgage terms you qualify for, and transparency is key in building trust.
Keep in mind that a credit score doesn’t tell the full story of someone’s financial situation, but it does give insight into how they’ve historically managed loans and repayments—an important factor when entering a joint financial commitment.
Put Everything in Writing
Co-buying is a legal and financial partnership. A lawyer or mediator can help draft an agreement that outlines each party’s responsibilities, investment percentage, and plans for managing shared expenses. It should also address what happens if one person wants to sell, rent, or exit the agreement earlier than expected.
Documenting these terms upfront protects everyone involved and helps create a clear path forward if circumstances change.
Be Strategic About Financing
Depending on your lender and mortgage structure, you may have several options for how to handle payments. Some co-buyers choose to set up a joint account to manage monthly installments, while others may apply for a blended or “mixer” mortgage that reflects different ownership percentages.
Speak with a mortgage specialist about what makes the most sense for your situation. The goal is to create a structure that’s fair, transparent, and financially sustainable for all parties.
Keep Communication Open
Check in with your co-buyer regularly, especially if you’re not living in the same space. Set aside time at least twice a year to discuss your property’s performance, any maintenance needs, or changing goals. Whether it’s deciding to rent out the space or exploring options to sell, ongoing conversations are essential to maintaining a strong co-ownership experience.
Choosing the Right Property
Your priorities—whether it’s location, builder reputation, potential rental income, or resale value—will shape the type of property you decide to purchase. Evaluate your needs as a team and choose something that aligns with your joint goals.
With the right preparation and a clear plan, co-buying can be a rewarding path to homeownership and a smart way to build real estate equity together.
Whether you’re just starting to explore co-ownership or are ready to take the next step, our New Home Specialists are here to help guide you through the process.
Thinking of co-buying or figuring out your path towards homeownership means exploring all your options. You might want to consider how renting compares to buying or whether a new build or resale home better fits your goals and lifestyle. Both decisions can have a big impact on your next step, and understanding the nuances will help you make a choice that feels right for you.