Co-Buying a Home in BC: What You Need to Know Before Buying Together
Could buying a home with a friend, sibling, partner, or parent help you get into the BC real estate market?
For some buyers, combining incomes and down payments can make homeownership possible. But co-buying also comes with financial and legal responsibilities that you need to understand before signing anything.
In Episode 108 of The Real Deal Pod, Fraser Valley Realtor Allister Carrington and GLM Mortgage Group’s Geoff Lee break down how co-buying a home in BC actually works.
They also discuss current BC affordability, first-time homebuyer programs, and some of the biggest risks buyers should consider.
How Does Co-Buying a Home in BC Work?
When two or more people buy together, a lender can consider their combined income when qualifying the mortgage.
Buyers can also combine their down payments.
However, adding another borrower doesn’t automatically mean you’ll qualify for significantly more. The lender also looks at each person’s debts and financial obligations.
Credit cards, vehicle payments, lines of credit, student loans, and other debts can all affect the amount you qualify for.
That makes it important to review everyone’s complete financial picture before you start shopping.
Understand Your Joint Mortgage Responsibility
Co-buying means sharing more than the monthly mortgage payment.
When you’re both responsible for the mortgage, the lender expects the payments to be made regardless of what happens between the co-buyers.
If one person stops contributing, the other borrower may still be responsible for keeping the entire mortgage current.
That’s why buyers need to understand the commitment before purchasing together.
Get a Co-Ownership Agreement Before You Buy
A written co-ownership agreement can be one of the most important parts of buying a property together.
Speak with a lawyer before completing the purchase. Your agreement should clearly explain how you’ll handle the property and your financial responsibilities.
Important questions include:
- Who contributes what toward the down payment?
- How will you divide the mortgage payments?
- Who pays property taxes, strata fees, repairs, and other expenses?
- How will you make major decisions about the property?
- What happens if one person wants to move out?
- Can one owner buy out the other?
- What happens if neither person can qualify for the mortgage alone?
- When would the property need to be sold?
It’s much easier to answer these questions while everyone is on the same page.
Buying a Home With Your Parents
Parents can also help their children qualify for a mortgage.
However, there can be an important difference between becoming a co-borrower and acting as a co-signer.
Parents should understand how either option could affect their own finances. Being responsible for another mortgage may affect their ability to borrow money in the future.
Before choosing this strategy, look at both the buyer’s needs and the parent’s long-term financial plans.
What Happens to First-Time Homebuyer Benefits?
Buying with someone who already owns or previously owned a home doesn’t necessarily mean you lose your own first-time buyer benefits.
Depending on your individual eligibility, programs such as the FHSA and Home Buyers’ Plan may still be available.
BC’s Property Transfer Tax exemption also has its own eligibility requirements.
Your situation matters, so don’t assume that your co-buyer’s history automatically determines what you qualify for.
Is BC Housing Becoming More Affordable?
Allister and Geoff also look at how affordability has changed since the 2022 market peak.
In some BC markets, buyers can now purchase properties for considerably less than they could a few years ago.
Chilliwack condos are one example discussed in the episode, with some properties back around the $290,000 to $299,000 range.
Lower purchase prices can reduce the down payment required and the mortgage amount needed.
For buyers who still can’t make the numbers work alone, co-buying may be another option worth exploring.
What Else Do We Cover in Episode 108?
This episode also looks at several other developments affecting BC real estate and the Canadian economy:
- Vancouver’s growing position as a North American technology hub
- What increased tech employment could mean for future housing demand
- A BC real estate enforcement case involving affordable homeownership
- Recent Canadian bank earnings and what they suggest about tariff impacts
- Why affordability should be discussed in real dollars, not only percentages
What You’ll Learn
- How combined income works when co-buying a home
- How lenders calculate each buyer’s debts
- Why both borrowers can be responsible for the entire mortgage
- Why co-buyers should have a written agreement
- What your exit strategy should address
- How buying with parents can affect their borrowing power
- How first-time buyer programs may work in a co-purchase
- What changing BC home prices mean for affordability
- Why co-buying can help some buyers enter the market sooner
The Bottom Line
Co-buying a home in BC can be a practical way to make homeownership more affordable.
But qualifying for the mortgage is only one part of the decision.
Before buying together, understand everyone’s finances, responsibilities, ownership structure, and exit strategy. Then put the important decisions in writing with the appropriate legal advice.
If the numbers work and everyone understands the commitment, co-buying could open a door that may be difficult to walk through alone.
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