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Why Joint Ventures Are Gaining Steam in Toronto Real Estate
Let’s be real — Toronto real estate is expensive, even as prices have cooled. But for the first time in a long time, multiplexes are cash flowing again. That’s opening up real opportunity for investors — especially those who are willing to team up.
If you’re struggling with down payment, mortgage qualification, or just don’t have the time or experience to take on a rental project solo, a joint venture (JV) could be your path in.
We’re seeing more and more of our investor clients structure deals this way — and when done right, it can unlock more buying power and faster growth.
What Is a Real Estate Joint Venture?
A joint venture is simply a partnership between two or more people who team up to buy, own, and manage real estate together.
Each person brings something to the table — whether that’s capital, income to qualify for the mortgage, experience managing renovations, or the ability to oversee the property long-term.
But here’s the key: the structure matters. Choosing the right setup can help you buy more properties, avoid unnecessary taxes, and protect your legal rights.
4 Smart Ways to Structure a Joint Venture in Toronto
1. One Person on Title
In this setup, only one partner is on title and holds the mortgage. That person must qualify fully on their own — strong income or high net worth is a must.
Everyone else joins through a signed joint venture agreement that spells out ownership shares and responsibilities.
Why this works:
Great for preserving borrowing capacity across partners
Only the person on title has the mortgage on their credit report
You can rotate title between partners to stretch how many properties you can buy (many lenders cap at 5 per person)
Biggest risk? Trust. The person on title legally controls the property — so make sure the JV agreement is rock solid and you’re working with someone reliable.
2. Everyone on Title and Mortgage
This one’s more balanced: all partners are on title and the mortgage. You pool incomes to qualify, and all share equal legal rights.
Why it’s good:
Simpler setup — no separate JV agreement needed
No one can refinance or sell without consent
Downside? Everyone takes on the full debt in the eyes of lenders. So even if you only own 25%, a $1M mortgage shows up on your credit report as a $1M liability. That eats into your ability to qualify for your next deal.
Use this if you don’t qualify solo — but know it’ll slow down your scaling.
3. Corporation on Title
In this structure, the property is owned by a corporation. The partners each own shares in the company, and the company holds title.
Why investors use this:
Adds legal separation between owners and asset
Mortgage may not appear on personal credit (depending on lender)
Helpful if you’re managing multiple properties under one brand
Tax alert: Rental income is considered “passive” for corporations, which is taxed at over 50% in Ontario. That’s a huge hit. It can work if you’re building a large portfolio or need brand protection, but it’s not always efficient for small-scale investors.
4. Bare Trust with Corporation on Title
This is an advanced option. Here, the corporation goes on title, but it holds the property in trust for the individual owners — called “beneficial owners.”
Why this is smart:
Still taxed at personal rates (you avoid that 50% passive income tax)
May still keep the mortgage off your personal credit report (depends on lender)
Flexible for estate planning — changes in beneficial ownership can sometimes be made without triggering land transfer tax or capital gains
Important: This doesn’t offer the same legal protection as a full corp setup. CRA sees the individuals as the real owners. It’s best used when you need admin simplicity and estate planning flexibility — not full liability protection.
Which JV Structure Is Best for Toronto Investors?
It depends on what you’re bringing to the table and what your long-term plans are.
Strong income but no capital? You might be the one on title.
Weak income but lots of cash? You may be better off partnering via a JV agreement.
Building a portfolio? A corporate structure might make sense — even with higher tax.
Want flexibility for future partners or estate planning? Look into a bare trust.
There’s no one-size-fits-all answer — but there are smart ways to tailor your setup based on what you want to achieve.
Use Our Toronto Mortgage Calculator to Plan Your Next Move
Before you buy, make sure the numbers make sense. Our free Toronto mortgage and investment calculator helps you:
Estimate your mortgage qualification amount
Add renovation budgets and closing costs
Break down monthly carrying costs and cash flow
It works whether you’re buying solo or in a JV.
Ready to Buy a Multiplex in Toronto?
If you’re serious about investing in a multiplex and want expert help — we’re here for that.
We’re a Toronto real estate brokerage that works exclusively with investors. Whether you want a turnkey rental or a BRRRR project, we’ll help you find solid deals, run the numbers with you, and guide you from purchase to rental.
Want to see what’s possible for you? Book a strategy session with us here.
What Toronto Real Estate Investment Is Right For You?
Check out our complete Toronto real estate investment guide for all the details and real-life examples. If you’re ready to dive in, just book a call with us!
