Co-Borrower

A co-borrower in BC is a person whose name appears both on the mortgage and on the title to the property, giving them equal legal ownership rights and equal responsibility for the debt. A co-signer, by contrast, guarantees the mortgage debt and is liable if the primary borrower defaults, but is typically not registered on title and therefore holds no ownership interest in the property. This distinction has significant consequences for property rights, tax obligations, and estate planning under BC law.

Under the BC Property Transfer Tax Act, PTT is calculated on the fair market value of the property interest being transferred and applies to all registered purchasers, including co-borrowers who are placed on title. Each co-borrower's share of ownership is subject to PTT at the standard rates of 1% on the first $200,000, 2% on the portion between $200,000 and $3,000,000, 3% on the portion above $3,000,000, and an additional 2% on the residential portion exceeding $3,000,000. Co-borrowers should confirm with the BC Ministry of Finance whether they individually qualify for any applicable exemptions, such as the First-Time Home Buyers' Program, as eligibility is assessed on a per-person basis.

Under BC's Property Transfer Tax Act First-Time Home Buyers' Program, where one co-borrower has previously owned a principal residence and the other has not, only the eligible first-time buyer's proportional share of the property may qualify for the exemption. The non-eligible co-borrower's share would attract standard PTT rates, meaning the exemption is not applied to the full purchase price in such cases. Buyers should consult the BC Ministry of Finance for the current fair market value threshold for the full exemption, which is $835,000 as of 2026, and for guidance on how proportional ownership is calculated.

The outcome depends on how the co-borrowers hold title: if they are registered as joint tenants, the right of survivorship applies and the surviving co-borrower automatically inherits the deceased's interest outside of the estate process. If they hold title as tenants in common, the deceased co-borrower's share forms part of their estate and is distributed according to their will or, if none exists, under the Wills, Estates and Succession Act (WESA, SBC 2009, c. 13). In either case, the surviving co-borrower remains fully responsible for the outstanding mortgage debt, as the lender's security is unaffected by the change in ownership.

Yes. Under the Real Estate Services Act (RESA) and the rules administered by the BC Financial Services Authority (BCFSA), a licensee must fully disclose the nature of the agency relationship and any conflicts of interest, particularly when representing two or more co-borrowers who may have differing interests. If both co-borrowers are clients of the same licensee or brokerage, the licensee must comply with BCFSA rules on dual agency, which are significantly restricted in BC. Licensees should ensure each co-borrower understands their rights and the limits of the representation being provided.

Under the Strata Property Act (SBC 1998, c. 43), strata fees and special levies are obligations attached to the strata lot itself, not to individual owners; however, as co-owners registered on title, both co-borrowers are jointly and severally liable for any amounts owed to the strata corporation. The strata corporation may pursue either or both co-borrowers for unpaid fees or levies, and unresolved strata debts can result in a lien being filed against the strata lot. Before completing a purchase, co-borrowers should review the Form B Information Certificate to confirm there are no outstanding financial obligations against the lot.

Under BC's Speculation and Vacancy Tax Act, each owner of a residential property located in a designated taxable region must file an annual declaration, and the tax is assessed based on each owner's proportional interest in the property. Both co-borrowers are therefore required to file separate declarations and may be assessed independently based on their residency status, income source, and use of the property. Co-borrowers should consult the BC Ministry of Finance for current tax rates and exemption criteria, as these are subject to annual review.

No. Because both co-borrowers are registered on title and are parties to the mortgage contract, any change to title or mortgage obligations — such as a transfer of interest or a refinance — requires the consent and participation of both parties. In the event of a relationship breakdown, if the co-borrowers cannot agree, one party may need to seek a court order under the Family Law Act or commence partition proceedings under the Partition of Property Act to resolve the ownership dispute. The lender must also agree to release a co-borrower from the mortgage obligation, which typically requires the remaining borrower to qualify independently.

Under BC's Personal Information Protection Act (PIPA), a real estate licensee (as a private-sector organization) must collect personal information from each co-borrower only for purposes that a reasonable person would consider appropriate, and must obtain meaningful consent from each individual separately. Licensees must not share one co-borrower's personal information with the other without appropriate consent, particularly if the interests of the co-borrowers are or may become adverse. Each co-borrower also has the right to request access to their own personal information held by the brokerage under PIPA.

Foreclosure in British Columbia is a judicial process governed by the BC Supreme Court Civil Rules and the Law and Equity Act; there is no power-of-sale mechanism as exists in some other provinces. In a foreclosure action, the lender must name all parties who hold an interest in the property, including all co-borrowers, as defendants. Because both co-borrowers are jointly and severally liable for the mortgage debt, the lender may obtain a deficiency judgment against either or both co-borrowers for any shortfall remaining after the property is sold through the judicial process.