Shared Keys, Shared Dreams: Co-Ownership Mortgages Gaining Momentum in BC and Alberta

 

Co-Ownership Mortgages Gaining Momentum in BC and Alberta

As affordability challenges persist across British Columbia and Alberta, a growing number of prospective homebuyers are embracing a practical solution: co-ownership mortgages. This strategy allows friends, family members, or even business partners to jointly purchase property—splitting costs, responsibilities, and ownership.

With rising home prices in Surrey, Abbotsford, and Edmonton, this shared model offers a meaningful path to homeownership for those priced out of solo buying.

Why Co-Ownership Is Trending in Late 2025

As of August 2025, housing inventory is improving slightly in BC’s urban hubs, but prices remain elevated compared to pre-2020 levels. Fixed mortgage rates have stabilized around 4.89%–5.19% depending on the term, prompting many buyers to consider shared ownership as a bridge to enter the market.

Here’s what’s driving the trend:

  • High down payments are now easier to meet when split
  • Combined income allows access to better mortgage products
  • Younger professionals are teaming up to stop renting and start building equity
  • Multi-generational families are pooling resources to buy larger properties

How Co-Ownership Mortgages Work

In a co-ownership mortgage, two or more individuals jointly apply for financing and share both ownership title and loan responsibility. The arrangement requires a detailed legal agreement, credit assessment for all applicants, and long-term planning.

If you're exploring this option, a mortgage pre-approval is a smart first step. It outlines what you qualify for as a co-borrower team and surfaces any credit or income gaps early on.

Legal and Financial Considerations

Before entering a shared purchase agreement, consider the following:

  • Draft a co-ownership contract covering:
    • Ownership percentage
    • Exit strategy
    • Maintenance and repair responsibilities
  • Decide whether you’ll hold title as joint tenants or tenants in common
  • Budget for property taxes, insurance, and unexpected repairs as a group
  • Set expectations on living arrangements, renovations, and resale timing

Looking to buy a rental-income property or multi-unit home as co-owners? Our rental property mortgage advisors can help structure your financing for both ownership and income generation.

Who Should Consider It?

Co-ownership can be ideal for:

  • Siblings or cousins looking to invest together
  • Couples not yet legally married but ready to co-purchase
  • First-time homebuyers in expensive cities
  • Friends with shared goals and timelines

Before proceeding, it's wise to explore available first-time homebuyer programs that might offer rebates or incentives.

Risks to Plan For

While rewarding, co-ownership does carry risk:

  • One partner’s default or credit issue affects all
  • Future changes (marriage, relocation, job loss) may strain agreements
  • Selling can be complicated unless clearly outlined from day one

To avoid financial surprises, some co-owners opt for a short-term fixed rate mortgage. This gives stability while leaving the door open for restructuring later. Learn more in our guide to mortgage renewal strategies.

Final Thoughts: Sharing the Keys to Affordability

In a landscape where affordability remains elusive for many solo buyers, co-ownership offers a path forward—but only with the right preparation and professional guidance. Whether you’re exploring this model with family, friends, or a like-minded partner, having the right mortgage structure and legal plan can make all the difference.

Ready to explore your co-ownership options? Connect with Sandhu & Sran Mortgages, your trusted advisors in Surrey, Abbotsford, and Edmonton.

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