Joint tenants versus tenants in common
Joint tenancy means equal shares with right of survivorship. Tenants in common lets you register unequal percentages that reflect what each person contributed, which is usually the right choice when the deposits differ.
Put the terms in a cohabitation agreement
A written agreement drafted by lawyers records the contributions, how ongoing costs are split, what happens if one person wants out, and how the property gets valued in that case. Do it before closing, not during a breakup.
- Record initial contributions and their source
- Set the split for mortgage, taxes, and repairs
- Define a buyout process and valuation method
Both names on the mortgage means both are fully liable
Lenders hold each borrower responsible for the entire payment, regardless of your private agreement. If one person stops paying, the other's credit takes the hit and the lender still expects the full amount.
Gifted funds need documentation
If a parent is helping, lenders require a signed gift letter confirming the money is not a loan. If it is genuinely a loan, say so, because it affects qualifying and should also appear in your agreement.
Frequently asked questions
- Can we register unequal ownership shares?
- Yes. Tenants in common allows any split, for example 70/30, recorded on title by your lawyer.
- Can one of us be removed from the mortgage later?
- Only with lender approval, and the remaining borrower must qualify alone. It is treated like a new application.
Talk to a Toronto private mortgage specialist
We arrange equity-based financing across Toronto and the GTA, whether you need a first position from a private lender or a second mortgage behind the bank you already have.