What You Need to Know About Mortgage Co-signing

Published: May 15, 2018 Last updated: July 12, 2022 at 8:58 am

Lenders More Likely To Ask For Co-signer With Canada’s Mortgage Stress Test

There are several reasons a mortgage lender might request a co-signer in order to approve your mortgage application.

Increasingly, people who would have qualified on their own a few years ago need a co-signer because of the new stress test. Past credit issues, insufficient or unstable job history and not having sufficient income to meet standard underwriting guidelines (especially with housing prices continuing to escalate faster than incomes) are some other reasons a co-signer might be needed.

Typically, mortgage co-signing is done by an immediate family member. Parents being the most common. If you’re thinking of “borrowing” from the bank of Mom & Dad, view this ASKROSS video to discover the ins and outs of using a co-signer:



[0:49] Find out why having your parents as a cosigner is not necessarily a slam dunk
[2:20] Utilize your lawyer’s expertise when drafting the cosigning agreement
[2:40] Learn how to alter the mortgage in the future if/when things change

Also, don’t forget to leverage your parents experience in the mortgage and home ownership arena during the whole process… and be sure to give them a big hug upon signing! 😉

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