top of page
  • Writer's pictureLendX Financial

All You Need To Know About Joint Mortgages

Home buying is not an easy task, and when coupled with rising prices as well as mortgage rules which keep changing and at times becoming more stringent, Canadians who want to buy a home often do not qualify for the mortgage they are looking for. On July 1, 2020, the Canada Mortgage and Housing Corp (CMHC) changed the rules of mortgage insurance, which has made it tough for home buyers to qualify for a CMHC-backed loan. In light of all these conditions, joint mortgages are gaining popularity. If you are among those who are looking to buy a home and cannot qualify the regular way, you may look at taking up a joint mortgage.

What are joint mortgages?

Joint mortgage is a term used to define a certain kind of mortgage wherein two or more people take up a mortgage jointly. The number of people taking a joint mortgage can go up to three or even four people at times. But most commonly it is two people who take up a joint mortgage. Joint mortgages often see a joint ownership of the property but this may not always be the case.

Who can apply for joint mortgages?

It is quite common that people who are in a business relationship and have an income property which is involved take up a joint mortgage. Another kind of relationship in which people take up a joint mortgage is with their parents. Parents come in the picture to help in improving the eligibility criteria of their children. More recently, a new trend is emerging wherein siblings or even friends take up a joint mortgage.

Type of co-ownership


You can choose between co-owning the house as joint tenants or you can be tenants-in-common.  In the former kind of co-ownership, each tenant has an interest in the investment, and in the event of the death of one of them, their share goes to the other tenant. However, if the co-ownership type is that of being tenants-in-common, each tenant owns a part of the property which is a part of their estate in the event of death. All co-owners are responsible for paying the mortgage. In case of one co-owner defaulting on a mortgage payment, the credit scores of both of them will be impacted.  

Look for flexible terms

Even though co-buyers of a property intend to live together for several years there may be a change in their current circumstances, such as marriage, or they might want a parent to move in with them or other such life issues. In such a case, they might want to end their part of the mortgage. In case the co-buyers have taken up a fixed-rate mortgage, it will attract a penalty which will be a large sum. To avoid such a scenario, experts recommend variable-rate mortgages for people who are looking to sign-up co-ownership agreements for taking a mortgage.

If you are a home-buyer looking to apply for a joint mortgage or need help with your current mortgage, do not hesitate to write to us at Lendx.

5 views0 comments


bottom of page