Co-Signer vs. Guarantor

signature If you can’t qualify for a mortgage on your own, a co-signer or guarantor can often get the job done. has a good article outlining the differences between the two.

Basically, a co-signer is on the title and a guarantor isn’t.  However, a guarantor must be more credit worthy because he/she “guarantees” the entire mortgage.

Each has their role.  Read more here.

Thanks to CMN for the link.

  1. I’m wondering if a 90 and 92 year old parent co signs for a mtg and they should then decide to sell their home what happens with the proceeds from that home? Are they responsible to pay off the one they co signed on? Also what if they passed on and the house goes into an estate?

  2. Is it the bank’s responsibility to ensure that an owner to be is capable of making mortgage payments independent of a guarantor when they sign the mortgage documents thus ensuring the act of lending is not “unconscionable”?

  3. I make $50,000 a year. Mortgage value is 240,000. My dad is my co-signer and makes $70,000 has one mortgage on a condo and one house. I have a trunk payment of 500 dollars a month and thats it. Will CMHC approve it?

  4. If a husband holds the mortgage, but has entered into credit counselling, can the wife apply as co-signer or co-borrower when it is time for renewal? And what are the specific requirements (eg. Must be employed full time 40hrs ? or Payment is a certain % of income?)

  5. Michelle your husband being in credit counselling should not impact your mortgage renewal with your existing institutional lender. The current lender should send a renewal document to you 30-60 days before renewal date and there should be no issues as long as you stay with them and not borrowing more money.

  6. My friend has a problem where he ended up being a guarantor to a property for a friend that promised he’s name will be off the property after his friend gets his finances settled. It’s been a couple of years since the promise to erase the name off the title and still hasn’t done so. Recently his friend keeps giving excuses and not complying. What can my friend do? Can he sell the house? If he does he doesn’t get a penny since he signed an agreement that he’s not entitled to any money from the estate. Any other options? Thanks.

  7. We are co-signers with our son. He is not paying anything and we are paying everything, Can we take the house over and kick him out?

  8. My husband and I live in Canada, Can we have our Father, who resides in the UK, co sign on our Mortgage?

  9. Who would make a good co-signor? My aunt who is 60 and owns her home (paid off) has offered, she is retired

  10. We qualify on out own for a mortgage with a regular bank but we are looking Into an all in one we will need a co signer, can my mom who already has a mortgage and she has already consigned my brothers condo. Is there a limit to how many times one can cosign?

  11. When the cosignor stops qualifying, that is the limit. The co signor must debt service all properties they have financing on.

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