03 Mar Co-Ownership Mortgages in BC | Affordable Homeownership

Introduction: The Rising Cost of Homeownership in BC

British Columbia’s housing market remains one of the most expensive in Canada, with cities like Surrey, Abbotsford, and Vancouver seeing continuous price hikes. The dream of homeownership feels out of reach for many, especially first-time buyers and self-employed individuals who struggle with high down payments, strict mortgage qualifications, and increasing interest rates.

But what if there was a way to share the financial burden and still own a home?

Enter co-ownership mortgages—a growing trend in BC that allows multiple buyers (friends, family members, or even business partners) to jointly purchase a property. This innovative solution helps reduce financial stress while increasing buying power. But is it the right move for you?

Before diving into the pros and cons of co-ownership, let’s first examine BC’s current housing market trends and why homebuyers are looking for alternative financing options.

The State of BC’s Housing Market: Why Co-Ownership is Gaining Popularity

1. Rising Home Prices

The cost of homeownership in Abbotsford and Surrey has risen sharply over the past few years. As of early 2025, the average home price in:

• Surrey: $1.2 million (Detached), $700,000 (Townhouse), $500,000 (Condo)
• Abbotsford: $1 million (Detached), $650,000 (Townhouse), $450,000 (Condo)

These high prices make it difficult for single-income households to afford a home, pushing many to explore co-ownership as an alternative.

2. Mortgage Qualification Challenges

With the Bank of Canada maintaining high interest rates (currently around 6-7% for variable rates in early 2025), qualifying for a mortgage has become tougher. Lenders have stricter requirements, making it difficult for:

✅ First-time homebuyers with limited savings
✅ Self-employed individuals with variable income
✅ Buyers with lower credit scores

A co-ownership mortgage combines multiple incomes, making it easier to meet lending requirements and qualify for a higher loan amount.

3. Alternative Financing is on the Rise

According to recent reports, 1 in 4 homebuyers in BC are now considering shared ownership models to enter the market. Co-ownership is becoming more common as:

• Friends and siblings team up to buy homes together.
• Multigenerational families pool resources to afford larger properties.
• Investors and house-hackers use co-ownership to buy income-generating properties.

With these trends in mind, let’s explore exactly how co-ownership mortgages work and who they are best suited for.

What is a Co-Ownership Mortgage?

A co-ownership mortgage allows two or more individuals to jointly own a property while sharing mortgage payments, property taxes, and maintenance costs. This structure can significantly reduce financial pressure and help buyers afford homes they otherwise couldn’t.

Types of Co-Ownership Arrangements

🔹 Joint Tenancy – All owners have equal ownership and rights to the property. If one owner passes away, their share automatically transfers to the other co-owner(s).

🔹 Tenants in Common – Each owner has a specific ownership percentage (e.g., 60%-40%), which can be transferred or sold separately.

🔹 Co-Borrowing with a Shared Mortgage – All parties are equally responsible for the mortgage payments and credit obligations.

Who is Co-Ownership Best For?

✔️ Friends or siblings looking to buy their first home together
✔️ Multigenerational families wanting to live under one roof
✔️ Couples not legally married who want to co-invest in a property
✔️ Real estate investors pooling funds to purchase a rental property

While co-ownership has clear financial advantages, it’s essential to understand both the benefits and risks before deciding if it’s the right move for you.

Benefits of Co-Ownership Mortgages

For many homebuyers in Surrey, Abbotsford, and across BC, co-ownership mortgages provide a realistic path to homeownership. Here are some key benefits:

1. Lower Down Payment & Shared Costs

Saving for a 20% down payment on a $1 million home means coming up with $200,000—a daunting amount for a single buyer. However, with co-ownership:
✅ Two or more buyers split the down payment (e.g., $100K each for two owners)
✅ Mortgage payments, property taxes, and maintenance costs are shared
✅ Lower individual financial burden compared to buying solo

2. Increased Mortgage Eligibility & Buying Power

Lenders assess mortgages based on income and debt ratios. With multiple buyers applying together, the combined income increases:
✅ Mortgage approval odds
✅ The total amount that can be borrowed
✅ Access to larger or better-located properties

For example, two buyers earning $80K each might struggle to buy a home alone, but together they can qualify for a $1.2M property with a co-ownership mortgage.

3. Entry into the Market Sooner

Instead of waiting years to save up, co-ownership allows buyers to purchase a home now—before prices rise even further.

4. Easier Loan Approval (Even with Bad Credit)

Some co-owners may have strong credit while others don’t. Lenders often consider the overall financial profile, meaning buyers with lower credit scores can benefit from their co-owner’s stronger financial standing.

5. Ability to Generate Rental Income

Co-ownership can also include renting out parts of the property to offset mortgage payments. For example:
✅ Basement suites can generate rental income
✅ Owners can house-hack by renting out extra rooms
✅ Airbnb or long-term rentals can help cover mortgage costs

Challenges & Risks of Co-Ownership

While co-ownership mortgages have many advantages, they also come with challenges that buyers must carefully consider.

1. Legal & Financial Responsibilities

✅ All co-owners are equally responsible for the mortgage—if one person stops paying, the others must cover it.
✅ If one co-owner wants to sell, the others must agree or refinance to buy them out.

Solution: A co-ownership agreement should be drafted by a real estate lawyer to cover:
🔹 Ownership percentages
🔹 Mortgage contribution terms
🔹 What happens if one owner wants to exit or defaults on payments

2. Potential for Disagreements

Conflicts can arise over:
❌ Property maintenance & repairs
❌ Home use (e.g., renovations, renting out rooms)
❌ Financial contributions & unexpected expenses

Solution: Clear communication and a written agreement help set expectations.

3. Exit Strategy & Selling Challenges

If one co-owner wants to sell, the process can be complex:
🔹 The remaining owners may need to buy them out
🔹 The home may need to be sold entirely, affecting all owners

Solution: Plan an exit strategy in advance, including refinancing options.

How to Secure a Co-Ownership Mortgage in BC

Step 1: Get Pre-Approved & Assess Eligibility

✅ Work with a mortgage broker to evaluate income, credit scores, and debt levels.
✅ Determine the maximum mortgage amount available based on combined finances.

Step 2: Draft a Co-Ownership Agreement

✅ Outline ownership structure, financial contributions, and exit strategies.
✅ Consult a real estate lawyer to ensure legal protection.

Step 3: Choose the Right Mortgage & Lender

✅ Some lenders offer specific co-ownership mortgage products.
✅ Work with a broker to find the best rates & flexible terms.

Step 4: Finalize the Purchase & Mortgage Agreement

✅ Complete property selection, mortgage approval, and legal paperwork.
✅ Ensure all co-owners understand their financial and legal obligations.

How Satbir Bhullar Mortgages Can Help You Get Approved

At Satbir Bhullar Mortgages, we specialize in helping first-time buyers, self-employed individuals, and families secure affordable mortgages—including co-ownership mortgages.

✅ Access to 38+ lenders for the best co-ownership mortgage rates
✅ Flexible mortgage terms & fast approvals (even with bad credit)
✅ Expert guidance on structuring co-ownership agreements
✅ Low down payment & alternative financing options available

Looking to buy a home with friends, family, or an investment partner? We can help you navigate the process and secure a mortgage that fits your needs.

Call us today at (604) 751-1447 or Apply Now to get started!

Final Thoughts

Co-ownership mortgages are becoming a popular solution in BC’s competitive housing market. By sharing financial responsibility, homebuyers can:
✔️ Enter the market sooner
✔️ Qualify for larger homes
✔️ Reduce financial burden with shared costs

However, it’s crucial to plan ahead, structure a clear agreement, and work with an experienced mortgage broker to secure the best financing terms.

Have questions about co-ownership mortgages? Contact Satbir Bhullar Mortgages today!