With the cost of real estate rising and affordability declining, multi-generational households are becoming more common across Canada. Here's what you need to know if you're considering pooling resources and living with extended family.
From 2011 to 2021, multi-generational households in Canada increased by over 21%. In 2021, they represented over 3% of the population—a number that's likely still climbing. Why? Affordability, family closeness, and a practical solution for childcare are driving more families to live together.
Half a million children under the age of 14 now live with their grandparents, marking a significant shift in household dynamics. This isn't just a trend for long-time Canadians either; many newcomers are also choosing this approach to enter the real estate market.
Money is a key reason for the rise of multi-generational homes. By pooling financial resources, families can afford larger homes and reduce household costs. Sharing the burden of daycare, which can cost $1,500 to $2,000 a month per child, is a huge motivator for parents seeking help from grandparents.
Pooling resources can also help with the down payment on a house, which is often a major hurdle for first-time buyers. Even with multiple family members contributing, however, down payment rules remain the same as for single buyers.
1. Mortgage Qualification
2. First-Time Home Buyer Benefits
Before moving in together, get a co-ownership agreement in writing. This legal document outlines the rights and responsibilities of everyone involved and helps prevent conflicts down the line. Here’s what you should include:
Co-ownership agreements typically cost around $1,500. While this might seem steep, it's a small price to pay compared to the potential conflicts it can prevent down the road.
If you’re thinking about buying a home with family, consider these steps and protect your investment from the start.
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