Types of Home Ownership in Canada

Most, if not all, dream of having their own home, but home ownership in Canada is more challenging to achieve than we imagined. It will take a lot of effort and decision-making before you achieve a homeowner’s title.

In Canada, there are a lot of types of home ownership you can choose from. So before you decide on being a homeowner, understanding the types of home ownership is crucial.

Types of Home Ownership:

• Registered Home Ownership

Registered home ownership has the owner’s name appearing on the title deed. It relates to a legal concept of the property’s true owner. It has the presence of a single owner that is deemed as registered ownership.

In case of dispute, the name on the title will determine the owner of the property.

• Freehold Ownership

Freehold property is any estate “free from hold” of any organization other than the owner. The most typical form of home ownership in Canada is freehold ownership.

It gives the most freedom as you own the property and the plot of land it sits on. You, however, will be responsible for maintaining the property, building, and land.

• Leasehold Interest

A leasehold interest is buying the building, not the land it sits on. It is often built on Native Canadian land or Crown lands. The lease usually last for 99 years but can be renegotiated.

Leasehold interests have a lower value than Freehold ownership. Additionally, leasehold properties tend to depreciate as the lease gets closer to the end.

• Co-Ownership

Co-ownership has several people agree to purchase a property together. The ownership can be: Formal, which means buying into a cooperative, and Informal, which means buying with friends or family.

In co-ownership, two or more people agree to enter a legal agreement to own a single property.

• Joint Tenancy

This homeownership is common between spouses or partners who purchase a home. An equal share of the property is divided among each owner. The ownership of a property by two or more people with a shared right of survivorship is known as joint tenancy.

If the other party dies, the other party will automatically acquire the deceased’s interest in the property.

• Tenants in Common

The property can be passed on to the heir in case of death. The owner can pass it to its heir even without the consent of other parties. If they do not have a will, the interest of the property is decided as per the Law of Ontario if the property is situated in Ontario.

You can be advised that ownership interests do not have to be the same. Each owner will be responsible for their own taxes and maintenance cost.

• Partnership Agreement

It is a document that sets the legal expectations, obligations, and rights of those involved in the real estate partnership. The agreement is detailed in the document, which also addresses any future problems regarding the ownership and management of the land.

In a partnership agreement, more than one person is shown on the title as the owner, contributing substantial funds for the purchase. It is to avoid future conflicts in the event of distributions of proceeds when the property is resold.

What Type of Home Ownership is Best For You?

Choosing what type of home ownership will best suit you is crucial. Doing extensive research to know the benefits and drawbacks of each type is crucial. Also, there are various factors to consider before deciding which path to take on your home ownership journey.

Once you understand the terms, narrow down your options and choose the best option. Consulting with a professional will be the option to get unbiased opinions and guidance. Decision-making will become much easier.

Tips on Your Home Ownership Journey

• Know What You Want

Before looking for a home, you should know what you want as a buyer. You should know what location, price range, and features are not negotiable and what options would be nice.

In that case, you’ll comfortably negotiate with your lender if you already have ideas.

• Check Your Credit Score

Your credit score will determine your creditworthiness, so it is important to check your credit score first and ensure that you have a healthy one. Also, check it with the two credit bureaus in Canada, TransUnion and Equifax. Ensure that there are no inaccuracies and errors.

These errors may cause a decrease in your credit score, which can significantly affect your mortgage application. It is essential to dispute any errors as soon as possible, too.

• Research Lenders

Different lenders offer different interest rates. It is essential to shop around and look for lenders offering the most reasonable interest rates. It is also important to see if the terms and conditions align with yours.

• Get Pre-approved

Getting pre-approved will inform you how much buying power you have. In that case, your options will be narrowed down, and you will save your efforts in looking for homes you cannot afford.

Getting pre-approved will give you more specific pricing guidelines, which can help you zero in on the home you want.


Understanding the different types of home ownership will help you choose the best option for you. Home ownership is a significant milestone for every individual and family, so organizing your thoughts and reviewing what option will best suit you is important.

Connect with us at Private Mortgage Canada and start your home ownership journey with us!

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