Buying a Home as Unmarried Partners in Ontario: Ownership Options

Buying a home together is a big step, and unmarried partners do not have the same default protections as married spouses. The way you take title and what you put in writing can decide who keeps what if things change.

This article explains the two common ways to hold a home and how to protect unequal contributions.

Why unmarried buyers need to plan

Ontario does not divide property between common-law couples when they separate. Each partner keeps the property they bought, and neither has a right to share the other's increase in property value. The matrimonial home protections do not cover unmarried partners either.

There is an exception. A partner who contributed to property the other owns may have a right to part of it, but unless the owner agrees to pay the contribution back, that partner may have to go to court.

Joint tenancy and tenancy in common

With survivorship, the surviving owner takes the home on the other's death. With tenancy in common, the deceased owner's interest does not end at death, so what happens to it depends on their estate planning. A common-law spouse does not inherit if there is no will.

A joint tenancy can also be affected if one owner registers a mortgage. In the land titles system, a charge registered by fewer than all the joint tenants does not automatically sever the joint tenancy, and whether the owners intended to sever is a factual question for the courts.

Protecting unequal contributions

If one of you puts in a larger down payment or pays more of the costs, the way you take title may not reflect that. A cohabitation agreement can set out your rights and obligations, including property, whether you are already cohabiting or intend to.

• It must be in writing, signed by both of you and witnessed, or it is unenforceable.
• Ontario's guidance advises that each partner speak to a different lawyer and that you exchange financial information before signing.
• A court may set aside a domestic contract if a party failed to disclose significant assets or debts, or did not understand its consequences.
• If you later marry each other, the agreement is deemed to be a marriage contract.

Debts, accounts and the mortgage

Being a couple does not by itself make you liable for the other's debts. Responsibility generally comes from what each person signs, so read the mortgage and credit documents carefully.

• Co-borrowers on a joint credit card are equally responsible for the balance.
• An additional cardholder is not responsible for repaying money owing on the account.
• Joint bank account holders share responsibility for all transactions, and an overdraft may create a debt for everyone on the account.

What to do next

• Write down what each of you is contributing, such as the down payment, closing costs and ongoing payments.
• Decide between joint tenancy and tenancy in common with survivorship in mind.
• Have each partner speak to a different lawyer about a cohabitation agreement.
• Update your wills and beneficiary designations once the purchase closes.
• Ask your lawyer to confirm how title should be registered.

Frequently asked questions