Multiplex Down Payment Strategies in BC (2026)

Money your parents give you and you never repay can be your down payment: CMHC accepts "a non-repayable financial gift", and the mortgage insurer Sagen asks for a gift letter that states the relationship, the date, the amount and that the gift is non-repayable, plus bank records showing where the money came from. A loan is debt, so the insurer counts its payments when it tests your income, and CMHC charges a premium of 4.50% instead of 4.00% when less than 10% down comes from sources such as an unsecured personal loan. The Canada Revenue Agency lists most gifts among amounts you do not report or pay tax on. Before any money moves, see a mortgage broker licensed by the BC Financial Services Authority, a lawyer or notary for the title and any family agreement, and a tax professional if a parent will be on title.

We corrected this post on October 31, 2026. An earlier version said a co-signer stays off title, although the Financial Consumer Agency of Canada says a co-signer is a joint borrower who is equally responsible for the loan. It also said every borrower on the mortgage must be a first-time buyer for BC's first-time buyers' exemption, although the exemption follows each buyer's share on title, and it suggested a 99/1 split of title to keep the exemption. It gave lender timelines and legal fees with no source, and its link to the Canada Revenue Agency no longer worked.

Most of the multiplex buyers we work with aren't writing a single cheque from one bank account. They're pooling money (partners, parents, sometimes siblings) to make the down payment work in a market where prices stretch even strong incomes. Here's how that pooling works in BC in 2026, what the lender and CRA look at, and what to do carefully.

The three most common ways families pool a down payment

In our experience, most down payments that come from more than one person fall into one of these three patterns:

• Gifted down payment: a parent or close family member gives money outright, with a signed gift letter and no repayment.
• Co-signing: a parent signs the mortgage as a joint borrower to help the buyer qualify. Some insurers also accept a parent as a guarantor.
• Joint ownership: two parties (usually parents and adult children, or siblings) buy together, with their names on title and on the mortgage, and a written ownership agreement.

Each path has different tax, qualifying and inheritance effects. The right one depends on your family's situation, the size of the gap, and how comfortable everyone is with each other's financial future.

Gifted down payments: the simplest path

A gifted down payment is what it sounds like. A family member transfers money to you, you put it toward the purchase, and you never repay it. "Normally, the minimum down payment must come from your own funds," says the Financial Consumer Agency of Canada, and CMHC lists a non-repayable financial gift among the sources it accepts.

What Sagen, one of the companies that insure mortgages, asks of the lender:

• The giver must have a close family or legal relationship with you, and no financial interest in the home.
• A gift letter that states the relationship, the date, the amount, and that the gift is non-repayable.
• Proof of the source of the money, from the giver's account or yours. For savings, the lender gets at least 3 months of account statements.

Ask your lender for its own gift letter form early, since each lender sets its own paperwork.

The Canada Revenue Agency lists "most gifts and inheritances" among amounts you do not report or pay tax on. For most families, this is the cleanest setup.

Co-signing: when income is the limit

Sometimes the buyer has the down payment but not enough income to pass the lender's income test, which uses the greater of the contract rate plus 2% or 5.25%. A parent can then join the mortgage.

Things to know before co-signing:

• The Financial Consumer Agency of Canada calls co-signing being a joint borrower: "you become equally responsible for repaying the unpaid balance on the borrowed amount."
• Sagen accepts a guarantor, or a co-borrower who does not live in the home, only from close family (father, mother, child, brother, sister), and it counts that person's debts when it tests the mortgage.
• Sagen requires everyone on title to be on the mortgage and responsible for the whole amount.
• If a parent goes on title, BC's first-time buyers' exemption covers only the share of the buyers who qualify, and a tax professional can tell you how the parent's share is taxed when the home is sold.

Joint ownership: when the family is buying as a unit

Two generations of one family can buy together, sometimes one home, sometimes two homes side by side in the same building. Everyone's name is on title and the mortgage. The split can be 50/50, 80/20, or any other share.

What this needs that the other two paths don't:

• A written co-ownership agreement covering ownership shares, mortgage payment splits, what happens if someone wants out, and what happens on death or divorce.
• Separate legal advice for each side. In our view, this is worth it even when the family gets along well.
• Advice from a tax professional on how each owner's share is taxed when the home is sold, since only one of the owners may live there.

Joint ownership can stretch a budget, and it adds paperwork and long-term decisions. Write the agreement before you buy, while everyone agrees. Our post on joint tenancy and tenants in common explains the two ways to hold title.

First-time buyer programs and how they fit

BC's first-time home buyers' exemption removes property transfer tax on up to the first $500,000 of the price, a saving of up to $8,000, for homes up to $835,000, with a partial exemption up to $860,000. Each buyer who claims it must be a Canadian citizen or permanent resident, have lived in BC for a year or filed 2 BC tax returns in the last 6 years, and never have owned a principal residence anywhere in the world. If a parent who has owned a home goes on title, "only the percentage of interest that the first time home buyer(s) have in the property is eligible," says the Province of BC.

For a newly built home, BC's newly built home exemption applies to homes worth $1,100,000 or less, with a partial exemption below $1,150,000. You must be a Canadian citizen or permanent resident, move in within 92 days, and live there for the rest of the first year. You do not need to be a first-time buyer.

The federal Home Buyers' Plan lets each first-time buyer withdraw up to $60,000 from their RRSPs. A First Home Savings Account gives $8,000 of room in the year you open it, up to $40,000 in total. Each person uses their own account and passes their own test; you can't use another person's room.

Common questions

Is a gifted down payment taxable in BC?

The Canada Revenue Agency lists most gifts and inheritances among amounts you do not report or pay tax on. Your lender will still want a signed gift letter and proof of where the money came from, so ask a tax professional if the gift is large or unusual.

Can my parents co-sign without being on title?

Some insurers accept a guarantor or co-borrower who does not live in the home, if that person is close family. Sagen requires everyone on title to be on the mortgage. Ask your mortgage broker which lenders accept a parent who stays off title.

Do I lose the BC first-time PTT exemption if my parent co-signs?

Only if the parent goes on title and does not qualify. The exemption then covers only the share held by the first-time buyers. A parent who signs the mortgage without being on title does not change the share. Talk to a lawyer or notary before you decide how to hold title.

What this comes down to

In our view, pooling family money to buy a multiplex home in Vancouver works best when it is written down. A gift needs a gift letter, a co-signer takes on the whole debt, and joint owners need an agreement. Get a licensed mortgage broker and a lawyer or notary involved early, before any money moves.

Want a multiplex shortlist that fits a pooled budget? Browse brand new multiplex homes across Vancouver and Burnaby on the properties page, or talk to our team. Our post on parents and adult children applying together works through an example with two incomes.

General information only. The down payment, insurance and tax rules on this page are as of October 31, 2026. They are not financial, mortgage, tax or legal advice. Speak to a licensed mortgage broker, a lawyer or notary, and a tax professional before you make an offer or move money.

Sources

• CMHC, "Purchase" (homeowner mortgage loan insurance), no date shown, read October 31, 2026.
• Sagen, Underwriting Policies and Standards, "Covenant Underwriting" (Gifts, Borrowed Funds, Cash, Guarantors and Non-Residing Co-borrowers, Property Ownership), no date shown, read October 31, 2026.
• Financial Consumer Agency of Canada, "How much you need for a down payment", page dated October 15, 2025, read October 31, 2026.
• Financial Consumer Agency of Canada, "Disclosure of information to joint borrowers", page dated October 15, 2025, read October 31, 2026.
• Canada Revenue Agency, "Amounts that are not reported or taxed", page dated September 17, 2026, read October 31, 2026.
• Province of BC, "First time home buyers' program", last updated June 20, 2025, read October 31, 2026.
• Province of BC, first time home buyers' exemption amounts, last updated December 3, 2025, read October 31, 2026.
• Province of BC, "Newly built home exemption", last updated January 6, 2026, read October 31, 2026.
• Canada Revenue Agency, "The Home Buyers' Plan", page dated February 17, 2026, read October 31, 2026.
• Canada Revenue Agency, "Contributing to your FHSA", page dated September 17, 2026, read October 31, 2026.
• BC Laws, Mortgage Services Act, sections 3 and 24, current to October 27, 2026, read October 31, 2026.