As home prices across British Columbia and Alberta begin to level off in mid-2025, one trend is gaining traction among first-time buyers and middle-income families alike: co-ownership mortgages. Whether it’s two siblings buying a home together in Abbotsford, or friends pooling resources to enter the market in Surrey or Edmonton, co-ownership is redefining affordability for the post-pandemic housing era.
While high interest rates have pushed many buyers to the sidelines, those who can qualify jointly may now be able to step into homeownership without waiting for the “perfect” market moment.
Why Co-Ownership Is Trending in 2025
According to recent data from the Canadian Real Estate Association (CREA) and provincial lenders, mortgage applications involving multiple non-spousal co-applicants are on the rise. This is especially true in urban spillover zones like Chilliwack, Abbotsford, Langley, and more recently north Edmonton.
Several reasons explain this trend:
- Affordability constraints remain high, despite softening in some markets
- Equity sharing allows families or friends to divide both costs and investment upside
- Longer amortizations and stable fixed rates make joint ownership more sustainable
- New buyers want entry points into appreciating markets without waiting years to save solo
This strategy also complements what we’ve discussed in our blog on the rise of 30-year amortization for first-time buyers, offering another path to reduce monthly costs.
What Is a Co-Ownership Mortgage?
A co-ownership mortgage refers to a mortgage agreement shared by two or more individuals (not necessarily related or married) who are jointly applying for a home loan. The property is usually co-titled, and each person’s financial responsibility is clearly defined in a legal agreement.
Types of Co-Ownership Arrangements:
- Joint Tenancy – Equal ownership and rights of survivorship
- Tenants-in-Common – Each party owns a defined share, and can sell or will their portion independently
- Equity Sharing Agreements – Often used when one party contributes capital and the other handles occupancy or mortgage payments
In BC, many urban co-buyers are opting for tenants-in-common, while in Alberta, mixed-use arrangements for duplexes or investment properties are more common.
Legal and Documentation Considerations
Before applying, co-owners must be clear on:
- Who pays what: down payment, monthly mortgage, taxes, maintenance
- What happens in a dispute or exit: sale, refinancing, or buyout
- How profits (or losses) will be shared
- Insurance and liability agreements
We always recommend working with both a mortgage advisor and real estate lawyer to ensure full clarity before purchase.
For buyers exploring this route, our team can guide you through custom mortgage plans that align with shared income and co-ownership structures.
Lender Criteria in 2025 for Co-Ownership Mortgages
Canadian lenders are increasingly open to co-ownership arrangements—if applicants meet key criteria:
- Combined income and credit checks: All applicants are assessed together
- Proof of legal agreement: Often required before final approval
- Down payment verification: Gifted funds, separate contributions, etc.
- Clarity on ownership shares and primary residency
Lenders in Fraser Valley and Edmonton may also consider zoning regulations—particularly for properties with secondary suites or dual occupancy potential.
If you’re considering refinancing into a co-ownership structure or tapping equity for a joint purchase, see our guide on refinancing in a lower-rate environment.
Regional Insight: What Buyers Are Doing in Abbotsford, Surrey & Edmonton
In Abbotsford:
Young professionals are partnering to buy duplexes and townhomes with secondary income units. These multi-owner purchases often include rental offset calculations in mortgage qualification.
In Surrey:
Multi-family co-ownership—siblings, cousins, or extended families—is becoming more common, especially in Newton, Guildford, and Fleetwood where zoning allows for laneway or suite development.
In Edmonton:
With stable prices and high rental demand, friends are teaming up to purchase properties with investment upside—often combining first-time buyer incentives with shared capital.
Risks and Rewards of Co-Ownership Mortgages
While co-ownership opens doors for many who may otherwise remain renters, it’s not without risks. Clear planning, legal protections, and a strong communication framework are critical.
Benefits:
- Affordability Access: Divide mortgage payments and reduce monthly costs
- Faster Entry Into the Market: Shared down payments mean less individual saving time
- Investment Potential: Dual-owner properties (e.g., with a suite) can yield passive income
- Stronger Approval Profile: Combined income and credit can lead to better mortgage terms
Challenges:
- Shared Liability: If one party defaults, the other is still responsible
- Exit Planning Is Crucial: Disputes can arise if one party wants to sell or refinance
- Credit Score Exposure: Late payments or debt load affects all co-borrowers
- Property Usage Clarity: Who lives where? How are repairs managed?
Practical Tips for a Smooth Co-Ownership Experience
Before proceeding, we recommend following these essential tips for success:
- Create a Legally Binding Agreement
This should outline:- Ownership percentage
- Cost-sharing terms
- Exit clauses and buyout options
- Get Pre-Approved Together
Lenders need a full financial picture. Visit our mortgage pre-approval page to learn what documentation is required for co-borrowers. - Discuss Long-Term Goals Early
Are you both in this for 3 years or 10? Will the property be rented at some point? - Plan for Contingencies
What if one person loses a job? What if interest rates rise after renewal? Explore fixed rate options through our first-time homebuyer solutions.
Is It Right for You?
Co-ownership isn’t for everyone—but in 2025–2026, it offers one of the most practical ways to unlock homeownership in tight markets like Surrey, Abbotsford, and greater Edmonton.
It’s particularly appealing to:
- Young professionals struggling with solo affordability
- Immigrant families pooling income streams
- Real estate investors looking for joint-venture entry points
Those exploring this route should also consider mortgage transfer strategies if they already own a home and want to restructure with another buyer. See our guide to smart strategies for mortgage transfers in 2025 for ideas.
Frequently Asked Questions (FAQs)
Q1. Can I get a co-ownership mortgage with a friend, not a family member?
Yes. Many lenders allow non-related parties, as long as documentation, legal agreement, and credit history are strong.
Q2. How is ownership split in co-ownership?
Ownership can be equal or unequal based on financial contribution. This must be legally documented before closing.
Q3. What if one person wants to sell?
This should be addressed in the co-ownership agreement. Often, a buyout clause or first right of refusal is included.
Q4. Will this affect my credit score?
Yes. All co-owners are equally responsible. Late payments by one party impact all credit files.
Q5. Can I qualify for the First-Time Home Buyer Incentive under co-ownership?
Possibly. If you meet income and occupancy criteria individually, you may still qualify. Our team can assess eligibility based on government programs.
Final Thoughts
As housing affordability challenges persist, co-ownership may be one of the most empowering and flexible tools available to BC and Alberta buyers in late 2025 and early 2026. From sidestepping rent traps to investing with a trusted partner, the benefits are real—but so are the planning demands.
At Sandhu & Sran Mortgages, we specialize in designing custom mortgage solutions tailored to shared ownership, unique income scenarios, and cross-border buyers. Whether you’re a first-time buyer or restructuring an existing mortgage with someone else, our team can help guide the way.
Connect with us to explore your co-ownership options:
https://www.sandhusranmortgages.com/contact-us/