In a recent article published in Le Devoir titled “Undivided ownership as a solution to housing unaffordability?”, John Fucale, Senior Vice President in charge of broker relations at Multi-Prêts, discussed the growing issue of housing affordability in Montreal, as well as the concept of undivided co-ownership.
Reconsidering undivided ownership.
Faced with the growing difficulty of accessing homeownership, Mr. Fucale notes that extending the amortization period is a possible, though challenging, solution. He emphasizes the importance of adopting a comprehensive strategy that involves reassessing and adjusting debt levels in order to reduce the financial costs associated with borrowing.
Although undivided ownership was relatively popular in Montreal around the mid-2010s—accounting for up to 15% to 20% of the resale market in some neighbourhoods—it remains a small segment of the real estate market, concentrated in specific areas of the city, according to Mr. Fucale. However, its popularity has declined with the rise of divided co-ownership (condominiums).
According to our mortgage brokerage expert, undivided ownership is not a major trend, largely due to constraints such as limited access to financing and specific requirements, including the obligation for each co-owner to obtain a mortgage from a single financial institution.
Here is a suggested article to deepen your understanding of the differences between divided and undivided co-ownership.
Anticipate a possible rate decrease in 2024 by adjusting your strategy with the help of your broker. Thanks to their expertise, you can navigate the real estate market with confidence!
Do not hesitate to contact a Multi-Prêts mortgage broker today to benefit from personalized advice and find the most suitable solution for your situation, whether for a divided or undivided co-ownership.