Buying a Home With a Co-Signer: How It Works
If you’re having trouble qualifying for a mortgage on your own—whether it’s because of income, credit, or both—adding a co-signer can help. It’s a common strategy, especially for first-time buyers or those with variable income, and it can make a big difference in getting approved.
What Is a Co-Signer?
A co-signer is someone who applies for the mortgage with you. In most cases, it’s a parent, sibling, or close family member.
They’re not just vouching for you—they’re a co-applicant on the mortgage. That means the lender will look at their credit score, income, and debts just like they would for the primary applicant.
The co-signer doesn’t need to live in the home or contribute to the payments, but they’re legally responsible for the mortgage alongside you.
Why Add a Co-Signer?
Lenders need to see that your income is enough to handle the mortgage payment, property taxes, and any other debt you have. If your income doesn’t quite support the mortgage amount you need, a co-signer’s income can help fill the gap.
Common reasons people use a co-signer:
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Not enough income to qualify on your own
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Self-employed or variable income
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Short credit history or lower credit score
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Carrying debt that affects your affordability
[Click here to get pre-approved with or without a co-signer]
Who Can Co-Sign?
Most lenders prefer co-signers to be immediate family members, especially if they’re not going to be living in the home. Ideally, they should have:
What Are the Risks for the Co-Signer?
Being a co-signer isn’t just a formality. It means:
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They’re responsible if the mortgage isn’t paid
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The mortgage will show up on their credit bureau
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It could impact their ability to borrow for something else
That’s why it’s important for both sides to be clear on expectations and responsibilities.
FAQ
Can I remove the co-signer later?
Yes, in many cases. Once your income and credit are strong enough, you can apply to refinance the mortgage and remove the co-signer.
Do co-signers need to be Canadian citizens or permanent residents?
Yes. Lenders typically require co-signers to live and earn income in Canada.
What if the co-signer already owns a home?
That’s usually fine—as long as their income and debts still fit the lender’s guidelines.
Final Thoughts
Having a co-signer can be a great way to qualify for the home you want, especially if you’re early in your career or rebuilding credit. Just make sure everyone involved understands what’s at stake.
[Click here to see if a co-signer could help your approval]