Half of Canadians Consider Owning a Home Through ‘Non-Traditional’ Means—Here’s How

A "For lease" sign stands in front of a row of houses in a newly build subdivision in East Gwillimbury in the Greater Toronto Area on Jan. 30, 2018. Reuters/Mark Blinch

Canadian homebuyers are looking for creative ways to buy a house, including co-buying along with a friend or relative, or rent-to-own opportunities, according to a new survey.

Nearly half of Canadians (48 percent) said they would consider non-traditional methods of buying a home in the RE/MAX survey, which was completed by Leger.

Rent-to-own scenarios were the most popular, with 22 percent saying they would use the method to become a homeowner.

These are agreements with companies where some of the rent paid every month goes toward a down payment for the home. When the contract is up, homebuyers will have saved enough for a down payment, but will still need to go through the mortgage approval process.

Twenty-one percent said they would go for co-ownership with a relative (not a spouse), which can be a risky option, as one B.C. woman found out.

Marilyn Dawson shares a home in Vancouver with another woman, Charlotte Joan Currie, in a co-ownership agreement that has created a toxic living environment, Ms. Dawson told B.C.’s Supreme Court, according to media reports.

Ms. Dawson said that Ms. Currie has banged on her door, yelled at her dog, and not contributed to tax costs and maintenance of the home.

She has petitioned the courts to sell the home and divide the money evenly.

Another alternative way into homeownership is to buy a house that has a separate unit that can be rented out, something that 17 percent of those surveyed would consider.

Thirteen percent of current homeowners have used a non-traditional way of buying a home, the survey found.

The survey comes after a report found housing prices in parts of the country were nearly 200 percent higher than what average Canadians can afford.

Mortgage comparison website Rates.ca found homes in Vancouver cost 249 percent more than average Canadians can pay, while in Toronto that number was 210 percent. Looking at national numbers, the prices of homes in Canada are about 141 percent more than homebuyers could afford.

While house prices dropped a little in 2023 to $678,282, they are expected to rise again to $694,173 in 2024 and hit $722,063 in 2025, according to Statista.

Alberta Booming

Alberta has been seeing an increase in housing prices and pressure as more Canadians are moving there.

In 2023, over 45,000 people moved to Alberta from other parts of the country, compared to 22,278 in 2022. The majority of Canadians who moved to Alberta were from Ontario (6,262) and B.C. (5,269).

Some of the reasons people have been moving to Alberta include a booming economy, purchasing power, affordable housing options, and no land transfer tax, according to a RE/MAX blog.

“Ultimately, Calgary’s real estate market is diverse and can cater to all housing budgets by offering affordable choices for homebuyers and renters,” the blog said.