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.

  12. If I was the person who purchased our condo-townhouse with my aunt and uncle and my aunt is my co-signer, what happens when/if I want to sell or move out on my own, but my cosigner does not want to agree to it, what (steps) can I do? Asked to be bought out?

  13. Hello, My husband and I co-signed for a house for our daughter and her soon to be husband. When we signed we verbally told them to make sure our names are off the title as co-signers after 5 years. Well 5 years have gone by and she got the mortgage renewed somehow without us having to sign. This happened 3 -4 years ago. Now she is trying to renew the mortgage again only the mortgage company told them they have to have our signatures. So she was trying to put it through again without our knowledge so our signatures stay on the mortgage. I don’t know what the problem is because they have been making all the payments without our help. Is there any way we can get off the mortgage? Also is there any action we can bring against the mortgage company for not getting our signatures after the first 5 years when our daughter and her boyfriend renewed it lasttime? I’m in a bit of a hurry because she wants us to sign the renewal papers within two days. Have you any advice for us?

    1. The mortgage must be refinanced to remove you from it. Your daughter would then need to qualify on her own.

      The lender should have got your signatures for the renewal. Call the lender and ask why the mortgage was renewed without your authorization. Some lenders automatically renew you if you don’t respond by a certain date.

  14. I was not notified that my house was in foreclosure until yesterday. I have moved out of province due to domestic violence and its been 12 yrs. I am the co signer and was advised that the ex had not made payment for over 90 days however, I have Never been contacted, advised etc. Now I find out he has since 10 yrs ago he had gone in and made changes with the lender to the payment cycle, extension etc. There is 9K left on the property which has 14 acres of property and a 5 bedroom Victorian home. How can I be liable if they changed the contract without my signature. Their lawyer concurred that they did not process the proper protocol . I need some advise as he says they are instructed to sell. How can I ensure that I get any of the additional funds if sold for more than 9K and she said they can change it without my authorization. Any advise before I become unglued. Its’ very stressful because I left that world 11 yrs ago and have made one payment on his behalf in Alberta. He is in NB.
    Thanks for any advice…

  15. My common law partner and I are breaking up. We both have our names on the mortgage. We both want the house. She has 10 years in the same company, making 50K, lots of debt and will probably need a cosigner
    I have been in the same industry for 20 years but not the same job. I make 65K and have no debt.

    Which of us would the bank be more likely to grant a mortgage to?

  16. I got a mortgage with my brother, father, and mother 8 yrs ago. My name is on the title and the mortgage agreement. The life ins policy is in my name. I am the only one with a steady income. My parents have been living in the property, but were urged to move out due to complications with their health and keeping up the house bills. My husband and I moved in to ensure the mortgage was paid. I don’t know if it is my mother’s idea or the lawyer who signed us all on, but she believes that I am on the mortgage as name only and have no claim to money when the house is sold. The lawyer states I should be paying them rent. I am assuming she thinks I was only down as a guarantor. The bank has reassured me that I am a homeowner, but mother refuses to listen to me and wants to take me to court. I have to hire a lawyer to tell her lawyer that he is an idiot! I am consumed with this problem and wondering if there is any other advice I can get. I need to add that mother has mental issues, not diagnosed and to everyone else appears sane. I don’t know if she will listen to a mortgage broker either, we had a mediator last year to help explain things, but she didn’t listen to him either. This is crazy! Do you have any other advice?

  17. Partner and I co-own a house. Both names are on title. We split a year and a half ago. I did all I could do…lawyer, put a lien on the house, etc. He is still living there I have covered 3 mortgage payments since leaving because of threats by the bank. The mortgage is up for renewal and I am refusing to sign. The bank says they can renew it anyway. Is this legal? The bank is aware I am not there. I did not receive a copy of the renewal package AND verbally, a month ago, the bank said they would not be renewing. Does he not have to qualify on his own for them to renew with just his signature? And am I losing losing any rights to the house by refusing to sign?

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