A lakeview cottage with cozy rooms, a sandy beach nearby, and a dock to watch sunsets was the dream of Corrine Evanoff. For years, she and her husband sought a suitable cottage but were hesitant to take on the burden of constant maintenance, such as fixing decks and pruning trees. Instead, they opted to rent a cottage while remaining hopeful of eventual ownership.
Their dream became a reality when they found a cottage not far from home—at a fraction of the price they had anticipated, thanks to fractional ownership. Also known as co-ownership, this arrangement allows multiple people, such as family, friends, or even strangers, to buy a share of a property. This innovative approach to property ownership addresses affordability concerns, especially as many Canadians find themselves priced out of the market, despite recent declines after pandemic peaks.
According to a May report by Re/Max, brokers and agents expect an approximate 1.8% national average price increase in the Canadian recreational market by 2025. During their first visit to a cottage at Frontenac Shores in Cloyne, Ontario, located about 300 kilometers northeast of Toronto, Evanoff recalled entering a lake-facing cottage with large windows and feeling truly captivated. Sitting in Muskoka chairs on the beach, with their feet in the water, Evanoff experienced a profound release of stress, realizing that their dream was finally within reach.
Evanoff and her husband now own one-tenth of a million-dollar cottage, costing them less than $100,000 for their share, which grants them five weeks a year at the property. Realtor Mike Lange, who specializes in co-owned cottages in Kawartha Lakes, Ontario, emphasizes that fractional ownership is distinct from timeshares. Unlike timeshares, where individuals must request a certain location with no guarantee of availability, fractional ownership offers more autonomy and reliability.
Don Smith, another co-owner in Kawartha Lakes, became intrigued by the concept of fractional ownership after seeing an ad about it while working as a mathematics and computer studies teacher. For the Smith family, fractional ownership was not merely a financial investment but rather a lifestyle choice that enhanced their family experience over the last two decades. Smith reflected on how their cottage became a site where his daughter learned to swim and kayak, building cherished memories.
However, fractional ownership might not suit everyone. Smith points out that such cottages are typically 100% debt-free, meaning new co-owners cannot secure conventional bank mortgages and must rely on personal loans or lines of credit to purchase their shares. Furthermore, personal touches in a fractional cottage may be limited, and co-owners cannot simply visit the property at any time.
Real estate developer John Puffer has considerable experience in building and selling fractional ownership cottages in Ontario. Initially, he expected buyers to be younger families in their 30s but was surprised to find that his clientele consisted mainly of individuals in their 50s and 60s, often purchasing shares for their adult children or considering the non-commitment to maintenance and costs.
Tanya Walker, a litigation lawyer and managing partner at Walker Law, advises potential buyers to engage a contract lawyer and treat the agreement like a prenuptial contract before entering into co-ownership. Key aspects to inquire about include the other co-owners, voting rights, and procedures for selling one's share. Walker also highlights the importance of understanding property management, financial considerations, and usage time agreements.
Puffer stresses the necessity for prospective buyers to fully comprehend their purchase, emphasize contract scrutiny, and familiarize themselves with the existing owners. For Evanoff and her husband, their visits to Frontenac Shores are becoming more frequent, as they plan their third trip next month. Expressing enthusiasm, Evanoff remarked, "This (fractional ownership) seems like the best-kept secret, but I think it’s going to catch on, and you’re going to see a lot of people tap into this market."
This article was first published on June 15, 2025.
