Could You Benefit From A Co-Signer On Your Mortgage? - PowerPoint PPT Presentation

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Could You Benefit From A Co-Signer On Your Mortgage?

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When it comes to applying for a mortgage in Canada, it could benefit you to have someone co-sign it for you, and below we take a look at co-signing in a little more detail: – PowerPoint PPT presentation

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Title: Could You Benefit From A Co-Signer On Your Mortgage?


1
Could You Benefit From A Co-Signer On Your
Mortgage?
2
  • When it comes to applying for a mortgage in
    Canada, it could benefit you to have someone
    co-sign it for you, and below we take a look at
    co-signing in a little more detail
  • What does it mean when someone co-signs a
    mortgage?
  • Basically, when a person co-signs your mortgage,
    theyre entering into an agreement to make the
    mortgage payments on your behalf, should you not
    be able to for any reason together you share the
    responsibility of the mortgage. While there are
    risks involved, if you select your co-signer well
    and most choose a family member and both
    parties uphold their end of the agreement, it can
    be helpful in some circumstances.

3
  • Why might someone need a co-signer?
  • Having someone you trust co-sign on your mortgage
    could help increase your buying power, and make
    you more attractive to lenders. With the stress
    test making it harder for individuals to qualify
    for a mortgage, having a co-signer means that you
    can use their income to help you qualify,
    although its important to remember that their
    debts are also included in the application.
  • If you have poor credit, your lender may even
    stipulate that you have a co-signer before they
    even consider you for approval.

4
  • Who makes a good co-signer?
  • Many young first-time home buyers ask their
    parents to co-sign their mortgage, and if theyre
    still working with a good income and little to no
    debt, it can prove advantageous for the borrower.
  • How are co-signers different from guarantors?
  • The two are similar, but they do have some
    important differences
  • With a co-signer, their name must appear on the
    title, while a guarantors does not. This means
    that the co-signer may be required to pay some of
    the land transfer taxes, and if youre buying
    your first home, you may lose part of the
    first-time buyer rebate.

5
  • Guarantors do not own any part of the property,
    whereas the co-signer does.
  • Co-signers are typically used for individuals
    with poor credit, while those with decent credit
    seeking to boost their maximum purchase price,
    may use a guarantor.
  • What you should know about co-signing
  • The individual you choose to co-sign your
    mortgage must be someone you trust. They must be
    able to make payments on your behalf if required,
    and failure to do so will not only mean that you
    must then make the payments, but your credit
    score could be negatively impacted, too.

6
  • If youre a co-signer, this could affect the
    amount youre allowed to borrow if you want to
    buy a rental property or purchase a more costly
    primary residence. Simply put, as a co-signer,
    you may not be able to spend as much as you could
    previously.
  • While co-signing can benefit a relative or close
    friend - and can almost certainly give them a
    better chance of qualifying for a mortgage - its
    not a decision to take lightly, and advice from a
    mortgage broker can help determine whether its
    the right decision to make, given both parties
    circumstances.

7
  • Mortgage-broker-Calgary is your best resource for
    finding a mortgage for your property. Luke Wile,
    is the best Calgary mortgage broker and is proud
    to serve clients from across Canada, while being
    centered in Calgary, Alberta. Luke is proud to
    serve his clients with a personalized approach to
    finding his clients the best and lowest Canadian
    interest rates and terms offered by the major
    banks and private lending institutions. If you
    are looking for mortgage brokers in Calgary AB,
    with Luke Wile you can get fast and personal
    expertise for your mortgage!
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