Sponsors are responsible for their spouses for three years, not five.
What does it mean ‘‘to sponsor’’?
When you agree to be a sponsor, you must sign a contract called an undertaking with the Minister of Citizenship and Immigration (or with the Ministère de l’immigration et des communautés culturelles [MICC] if you live in Québec).
The undertaking is a promise to provide financial support for your spouse or common-law partner’s basic requirements and those of his or her dependent children.
Basic requirements are:
•food
•clothing
•utilities
•personal requirements
•shelter
•fuel
•household supplies
This also includes other health care not provided by public health, such as eye and dental care.
The undertaking ensures that these persons and their family members do not have to apply for social assistance. Its length varies according to their age and their relationship to you.
Your obligations as a sponsor begin as soon as the person you are sponsoring and, if applicable, his or her family members arrive in Canada.
Important information. The undertaking is an unconditional promise of support. For example, the granting of Canadian citizenship, divorce, separation or relationship breakdown or moving to another province does not cancel the undertaking. The undertaking also remains in effect even if your financial situation deteriorates.
Basically, if he applies for welfare - she will have to repay it. That being said, he also promised to do everything in his power to stay employed when he signed his papers, so if he goes on welfare to punish her, she can report it. I personally would let them think the undertaking is five years. Their ignorance could be your friend.
As far as the loans, those can be taken up in divorce court. If they weren't married, I hope she has a co-habitation agreement that deals with the loans. If not, she is responsible as any co-signer. She may want to speak with a lawyer regarding that. Depending on her province, she may have rights to either the property or to have him make a new loan without her name.
There's little to nothing that can be done regarding his permanent residency. If she feels she was scammed, she can report it. However, seeing as he's from England, I don't see CIC investigating.
It sounds like these people are trying to blackmail you. I would keep all records, emails, texts, letters. Try to keep all communication written. That way if there is trouble later, you have proof.