Undivided Co-ownership: Mortgage and Financing
December 1, 2008 by Deyanira Bautista
Filed under Buying Real Estate
If you are looking to buying into a Co-propriété with a 15% down payment, start looking else where. The minimum down payment is 20%, and depending on the bank financing it, could be even higher than that: 30 – 35%. These types of properties are NOT covered by the CMHC (Canadian Mortgage and Housing Corporation).
While talking about financing, it’s important to mention that many major lending institutions do not offer mortgages for undivided Co-ownership types of buildings. The reason for this? We don’t have the foggiest idea. But, we can safely assume that since this is still a fairly new way of ownership, not every bank is ready to just jump into the “undivided co-owership wagon”. The two banks we’ve noticed the most offering financing for undivisions are: TD Canada Trust and Caisse Popular Desjardins.
Shared common costs:
Unlike condo owners, the co-proprietors share the tax bills: property and school. Renovation and maintenance fees are also part of the shared costs, much like the condo fees. The most appealing part about buying into an undivided property, according to recent buyers, is that you get to split the costly annual property tax bill. But is that good enough reason to own shares into a property as opposed to buying your own? The decision is yours, dear buyer.
If you have questions regarding condo purchasing, or require assistance, contact us
Stay tuned: Subscribe to the Montreal Real Estate Blog
Posted by: Deya Bautista - Affiliated Real Estate Agent working as part of the McGill Immobilier team. Specializing in condos and revenue property in the metropolitan area of Montreal. For buying or selling contact Deya at: 514.917.7889 
I don’t think undivided co-ownership is a new form of ownership- in fact, I think that it’s divided co-ownership which is the innovation in Quebec. Some banks might not offer hypothecs on them because each individual owner has less say over the property than do owners of divided property. This means that the bank’s hypothec is subject to the rights of other co-owners, and can just get messy if they ever need to exercise it.
The housing correction is at the root of our economic and market difficulties. The most important thing we can do to mitigate foreclosures and progress through the housing correction is to reduce the cost of mortgage finance, so more families can afford to buy a home, and so homeowners can refinance into more affordable mortgages.
Myrtle Beach Real Estate
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Sharon
I’m also wondering, what contingencies are put into place to protect one owner from the other should one skip town or stop paying the bills?
We’ll be looking into that on this topic’s next update. Apparently, there are regulations and rules within the legal documents of undivisions. We’ll write up the scoop soon.
Hi Sharon,
Thanks for passing by. Comments are always welcome.
I agree 100% with that statement. Let’s just see how the government handles this mess.
Why is everyone telling me not to buy an indivise?? What I'm disliking is that I have to be at the same branch, same bank as the other owner – which leaves me powerless to negotiate anything. In addition the other owner is a total stranger – what if he skips out on his payments? The bank has told me that the house could be re-possessed and we would have to "get out" of our own place??? This is a quote from the mortgage specialist I'm dealing with…is this right???