Buying Solo vs as a Couple in Quebec | Mortgage Implications

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In Quebec, buying property alone versus as a couple carries very different legal and financial consequences. When a couple buys together, both partners typically appear on the property title and on the mortgage as co-borrowers. The Civil Code of Quebec provides specific rules based on marital status: married or civil union spouses are subject to family patrimony rules (articles 414 to 426 C.C.Q.), meaning the family residence is automatically part of the assets to be divided upon separation, regardless of who holds the title. Common-law partners, however, do not benefit from this automatic protection and must plan written agreements, such as an indivision agreement, to protect their respective rights. Buying in indivision allows each co-owner's share to be defined, which is essential when financial contributions are unequal. On the mortgage side, buying as a pair often allows qualification for a higher amount thanks to combined incomes, improving the gross debt service (GDS) and total debt service (TDS) ratios. However, both borrowers are jointly and severally liable for the entire loan. Buying solo offers greater legal simplicity and complete decision-making autonomy but limits borrowing capacity to a single income. Mortgage brokers in Quebec should advise clients on appropriate legal protections based on their conjugal situation and refer them to a notary for drafting the necessary documents.

Buying solo or as a couple: a choice with major legal consequences

Purchasing a property is one of the most significant financial decisions of your life. In Quebec, this decision takes on an additional dimension depending on whether you buy alone or with a partner. The Civil Code of Quebec establishes precise rules that vary according to your conjugal status, and these rules directly impact the protection of your rights, property sharing, and mortgage obligations.

Advantages and disadvantages of buying solo

Buying solo offers appreciable legal simplicity: you are the sole owner, you make all decisions about the property, and you do not need another person's agreement to sell or mortgage it. In return, your borrowing capacity rests entirely on your income alone. Lenders will calculate your gross debt service ratio (GDS, generally capped at 39%) and total debt service ratio (TDS, maximum 44%) based solely on your income and personal debts. This can limit the accessible purchase price, particularly in urban markets such as Montreal or Quebec City.

Buying as a couple: co-borrowing and co-ownership

When two people buy together, they generally become co-owners in indivision and co-borrowers on the mortgage. The main advantage is that both buyers' incomes are combined for mortgage qualification, which can considerably increase the admissible amount. However, each co-borrower's debts are also factored into the ratio calculations. Under Quebec law, both co-borrowers are jointly and severally liable for the entire mortgage debt, not just their respective halves.

Family patrimony and legal protection by conjugal status

In Quebec, the family patrimony (articles 414 to 426 C.C.Q.) protects married spouses and civil union partners. The family residence is automatically part of this patrimony, and its net value will be divided equally upon divorce or civil union dissolution, regardless of whose name is on the title. This protection is a matter of public order and cannot be circumvented by contract. Common-law partners, however, benefit from no equivalent protection. If an unmarried couple separates, only the owner named on the title retains the property, unless an indivision agreement or cohabitation contract provides otherwise.

The indivision agreement: essential for common-law partners

For common-law partners buying together, a notarized indivision agreement is a fundamental document. It establishes each co-owner's share (for example, 50-50 or 60-40 based on financial contribution), rules for sharing ongoing expenses (mortgage, taxes, maintenance), buyout conditions for the other's share upon separation, a right of first refusal if one co-owner wishes to sell, and dispute resolution mechanisms. This document should ideally be drafted by a notary before signing the purchase offer.

Assess your conjugal situation: Déterminé whether you are married, in a civil union, or common-law partners, as legal protections differ considerably.
Calculate borrowing capacity: Compare the admissible amount solo and as a pair, accounting for each party's income and debts.
Consult a notary: Have an indivision agreement drafted if you are common-law partners, or review your marriage contract if applicable.
Choose the title structure: Decide on the share distribution (50-50 or other proportion) based on respective financial contributions.
Obtain necessary insurance: Arrange mortgage loan insurance to protect each co-borrower in the event of death or disability.

Frequently Asked Questions

What are the legal differences between buying solo and as a couple in Quebec?

Buying solo means you are the sole owner and solely responsible for the mortgage. Buying as a couple typically involves co-ownership (indivision) and co-borrowing. Married or civil union spouses are protected by Quebec's family patrimony rules under the Civil Code, while common-law partners must arrange contractual protections.

Does family patrimony apply to common-law partners?

No. Family patrimony (articles 414 to 426 C.C.Q.) applies only to married or civil union couples. Common-law partners have no automatic protection over the family residence. They must draft an indivision agreement or cohabitation contract with a notary to protect their rights.

Does buying as a couple allow for a larger mortgage?

Yes. Both co-borrowers' incomes are combined for qualification ratio calculations (GDS and TDS), which increases borrowing capacity. However, both persons' debts are also considered, and both are jointly and severally liable for the entire repayment.

What is an indivision agreement and why is it important?

An indivision agreement is a notarized contract that defines each co-owner's share, expense-sharing rules, buyout conditions in case of separation, and the right of first refusal. It is essential for common-law partners buying together to prevent disputes.

What happens if one co-borrower can no longer pay their share?

In a co-borrowing arrangement, both borrowers are jointly and severally liable for the entire mortgage. If one stops paying, the lender can demand full payment from the other. This is why adequate mortgage insurance and provisions in an indivision agreement are crucial.