Multi-Generational Living: A Growing Trend in Canada
With real estate prices climbing and affordability slipping out of reach for many, more Canadian families are turning to multi-generational living as a practical solution. Pooling resources with parents, grandparents, or other extended family members is becoming increasingly common - and it comes with both financial and lifestyle benefits.
Why Multi-Generational Homes Are on the Rise
Between 2011 and 2021, the number of multi-generational households in Canada grew by more than 21%. Today, they account for over 3% of the population, and the trend continues to grow. Families are embracing this living arrangement not only to save money, but also to stay connected and share responsibilities such as childcare.
In fact, over half a million children under 14 currently live with their grandparents. For newcomers to Canada, multi-generational living is common, not only due to cultural or traditional reasons, it’s also an accessible way to establish roots in the housing market and improve their financial standing more quickly.
The Financial Upside of Living Together
For most families, the biggest driver is financial. Sharing household expenses makes larger, more comfortable homes attainable while also reducing ongoing monthly costs. Childcare alone - often $1,000 or more per child each month - can be a major motivator for parents who rely on grandparents for day-to-day support. Utility bills, groceries, and transportation expenses can also be divided, creating more breathing room in the family budget.
Pooling funds doesn’t just help with day-to-day living - it can also accelerate long-term goals. Saving for a down payment becomes more achievable when multiple incomes contribute to the same household. In some cases, combining income on a mortgage application can even strengthen borrowing power, helping families qualify for a larger purchase price than they could individually. That said, it’s important to remember that mortgage qualification rules still apply. Mortgage lenders will carefully review income, credit history, and debt levels for all applicants on the mortgage.
Key Things to Know Before Buying Together
If you’re considering co-buying with family, keep these factors in mind:
1. Mortgage Qualification
Lenders typically allow up to four applicants on one mortgage.
If more adults are involved, not everyone may be listed on the mortgage or property title.
All applicants’ income and debt are considered, which can impact overall approval.
2. First-Time Home Buyer Incentives
Family members who are first-time buyers can still access benefits such as the RRSP Home Buyers’ Plan and First Time Homebuyer tax rebates.
Protect Your Investment with a Co-Ownership Agreement
While living with extended family can be rewarding and offer many benefits, establishing clear and well understood expectations at the outset is key. A co-ownership agreement drafted by a lawyer can help prevent potential conflicts or future disputes by outlining each person’s rights and responsibilities.
Here are some essentials to cover:
Ownership shares – What percentage of the home does each person own?
Operating costs – How will property taxes, utilities, and repairs be divided?
Renovations – Who decides and who pays if upgrades are made?
Shared spaces – What are the rules for common areas, furniture, and pets?
Dispute resolution – How will disagreements be handled?
While a legal agreement can cost around $1,500, it’s a worthwhile investment compared to the potential cost of family disputes later on.
Final Thoughts
Multi-generational living can be a smart way to manage rising housing costs while staying close to family. With the right planning—and the right legal and financial advice—you can make sure everyone’s interests are protected and enjoy the benefits of this growing trend.
Thinking about buying a home with family? Our mortgage team can guide you through your options, help you understand how lenders view multi-generational applications, and find the right solution for your unique situation. Connect with us today to get started!