Co-Signers, Guarantors & Gifted Funds FAQs

Can a co-signer help me qualify?

A co-signer may help if their income and credit strengthen the application. They also become legally responsible for the mortgage, so the decision should be made carefully with independent legal advice where appropriate.

What is the difference between a co-borrower and a guarantor?

The legal structure and lender requirements can differ. A co-borrower is generally an applicant directly responsible for the mortgage and often on title, while a guarantor may guarantee repayment without having the same ownership structure. Your lawyer should explain the legal implications.

Can my parents co-sign even if they own their own home?

Potentially. Their income, debts, credit and existing housing obligations will be included in the lender's assessment.

Can a co-signer be removed later?

Possibly, but removal is not automatic. The remaining borrower generally needs to requalify on their own and the lender must approve the change.

What proof is needed for a gifted down payment?

Lenders commonly require a signed gift letter, evidence of the donor's relationship to the borrower and proof that the funds were deposited into the borrower's account. Additional verification may be requested depending on the source and lender.

General information, not an approval, rate offer or personal legal or tax advice. Mortgage options depend on the lender, insurer, property and application. Government programs and lender requirements can change.

Let’s talk about your next step.

Your circumstances deserve a personal conversation.

Book a consultation