• Now this is a very common question as many people look at a co-sign mortgage as a temporary fix to a long-term investment.
• The steps to take a co-signer off title are quite simple. Through the process of refinancing your home, you can restructure your mortgage terms without that additional borrower.
• When removing a co-signer from title, you will need to consider whether you can qualify for that mortgage without their income. Additionally, market factors such as your current interest rate compared to your new interest rate need to be considered. In times of higher interest rates, the increase to your monthly payment can often be corrected by increasing your amortization to 30 years.
• It all comes down to proper preparation & planning.

• The process of adding a co-sign to your application is a straightforward step. Essentially, we are factoring in both the income AND the debts of that applicant, including their credit worthiness.
• A co-sign applicant is looked at the exact same way a primary borrower is viewed on a mortgage application.

With any co-signed mortgage, as the co-signer, you are pledging your responsibility to repay the mortgage loan should the primary borrower default on their mortgage payments. As a co-signer on a mortgage, you share in the ownership & the liability of the property.

• While there are many situations where a co-sign might make sense, some of the most common times a co-sign is added to a mortgage application is due to a lack of income or credit.
• Many will also add a co-sign to increase their total purchase power, add a home equity line of credit, or to simply bring another borrower on title.
• Other factors for adding a co-sign may include an accumulation of too much household debt, an increase in the qualifying rate, or having a series of rental properties that simply make it harder to qualify, despite the real-life cash flow component.

• Unfortunately, in this case, having a co-sign would not change the amount you are required to put down for your down payment.
• When adding a co-signer, you are looking to add income to your application in the hopes of increasing what you can ultimately qualify for.
• When a greater down payment is needed, we would then look at options such as gifted funds, home equity lines of credit, a co-signer with additional down payment funds, or putting together a plan to help you save for your future home.

There are two ways you can purchase property in Canada

• Joint Tenancy – When you purchase a home as joint tenants, you both own the property equally as one.
• Tenants in Common - When you purchase a home as tenants in common, you can legally divide ownership shares of the asset between the owners how you like.
• The big difference between purchasing property as joint tenants over tenants in common is that a joint tenancy creates a “right of survivorship”, meaning the shares of the property pass onto the other owner(s) and not to their beneficiaries.

Your option to register your mortgage as a Joint Tenancy or Tenants in Common will greatly depend on the lender. This is why it’s important to have this conversation with one of our trusted mortgage advisors as each lender will have different requirements as to how they want to register your new mortgage.

A Co-Sign Mortgage involves a secondary party, the co-signer, adding their name and financial credentials to the mortgage application to help the primary borrower qualify for the loan. This can be crucial for individuals with limited credit history, lower income, or those who have faced financial difficulties that impact their ability to secure a mortgage independently. The co-signer acts as a guarantor, promising to take on the mortgage payments if the primary borrower cannot make them. This added layer of security can make lenders more willing to approve the mortgage, offering better terms and rates for the borrower.

Typically, a co-signer is a family member or a close friend with a strong credit profile, stable income, and a low debt-to-income ratio. The co-signer should have a good financial standing, as their credit history and economic status will be evaluated by the lender and the primary borrower. Common co-signers include parents helping their children purchase their first home or siblings supporting each other. The co-signer needs to understand that they are equally liable for the mortgage debt, and their credit score can be affected if payments are missed. Before agreeing to co-sign, both parties should thoroughly discuss the financial implications and responsibilities.

The benefits of a Co-Sign Mortgage are multifaceted. Firstly, it can significantly improve the primary borrower's chances of mortgage approval, especially if they have a limited credit history or lower income. Secondly, having a co-signer can lead to more favourable loan terms, including lower interest rates, making the mortgage more affordable. Thirdly, it provides financial flexibility, allowing the primary borrower to explore better property options without being limited by their financial constraints. Additionally, managing a Co-Sign Mortgage successfully can help the primary borrower build a positive credit history, which is beneficial for future financial opportunities. This arrangement fosters collaboration and support, strengthening relationships and creating shared financial goals.

Applying for a Co-Sign Mortgage is a straightforward process with Boychuk Mortgage Group. Our experienced professionals will guide you through each step, ensuring a seamless experience from application to approval. Here's how you can get started:

Initial Consultation: Contact Boychuk Mortgage Group to schedule an initial consultation. During this meeting, we will discuss your financial goals, current situation, and the specifics of your home-buying plans. Whether you are the primary borrower or considering co-signing for someone else, we will tailor our advice to suit your needs.

Pre-Qualification: We will assist you in completing a mortgage pre-qualification application. This process involves gathering essential financial information from both the primary borrower and the co-signer(s). We'll assess your income, assets, debts, and credit history to determine the mortgage amount you may qualify for.

Mortgage Application: We will help you complete the formal mortgage application once pre-qualified. This step involves submitting detailed documentation, such as income verification, employment history, and bank statements. Our team will ensure that your application is thorough and accurate, increasing your chances of approval.

Approval Process: Boychuk Mortgage Group prioritises efficiency in the approval process. We work closely with our network of lenders to secure competitive terms and favourable interest rates for your Co-Sign Mortgage. We aim to give you peace of mind and confidence as you move closer to homeownership.

Closing and Beyond: We will guide you through the closing process upon approval, ensuring all necessary paperwork is completed accurately and on time. We are committed to delivering exceptional customer support throughout your mortgage journey. Our team remains available to address any questions or concerns you may have, even after moving into your new home.

At Boychuk Mortgage Group, everyone deserves the opportunity to achieve their homeownership dreams. Whether you are seeking support as a primary borrower or considering co-signing for a loved one, we are here to provide expert guidance and personalised solutions. Contact us today to learn more about how Co-Sign Mortgages can benefit you and to start your journey toward owning a home in Burnaby, British Columbia.