MORTGAGE CO-SIGNERS — WHAT YOU REALLY NEED TO KNOW

Co-signing a mortgage can be a huge help for someone who can’t quite qualify on their own — but it’s also a major financial responsibility that many people don’t fully understand.

Here’s a clear breakdown of why co-signers are needed, what lenders look for, and what risks you need to consider 👇

1️⃣ Why are co-signers being requested more often?

Recent mortgage rule changes have made approvals tougher:

✔️ tougher credit standards

✔️ stricter income qualification

✔️ stress-test rules that reduce borrowing power

If the main applicant is short on income OR has weak credit, a co-signer fills that gap. But the reason matters — you should always ask *why* you’re needed.

2️⃣ What does being a co-signer actually mean?

It does NOT mean simply “backing up the loan.”

It means:

✔️ your credit is fully checked

✔️ your income, debts, and taxes are reviewed

✔️ you are legally responsible for the mortgage

✔️ you must provide full documentation

Lenders treat you exactly like a full borrower.

3️⃣ Expect to provide a LOT of documents

Depending on the lender, you may be asked for:

• Letter of employment

• Recent pay stubs

• 2 years T1 Generals + Notices of Assessment

• Proof of down payment (if you’re helping)

• Tax bills on properties you own

• Mortgage statements

• Lease agreements (if applicable)

• Separation/divorce agreements (if applicable)

It’s not a symbolic signature — it’s a full mortgage application.

4️⃣ Big risks co-signers must understand

Before you agree, keep these critical points in mind:

⚠️ This debt now counts against YOU

It will appear on your credit bureau and can limit your ability to borrow for your own needs later.

⚠️ Late payments affect your credit

If the main applicant pays late, your score drops too.

⚠️ If they can’t pay — YOU must

You are 100% legally liable for the payments.

⚠️ You may not be able to remove yourself quickly

Every lender has different rules — some allow removal after 12–24 months, others require full re-qualification.

5️⃣ Smart precautions co-signers should take

If you decide to proceed, protect yourself:

✔️ Request a yearly mortgage + tax statement for confirmation

✔️ Use a joint account for the mortgage payments so you can monitor

✔️ Ensure adequate life insurance is in place

✔️ Discuss an exit strategy BEFORE signing anything

You should know exactly when and how you can be removed from the mortgage.

💬 Final Thought

Co-signing can make homeownership possible for someone who needs a boost — but it’s a serious financial commitment. Understanding the risks, responsibilities, and long-term implications is essential before signing.

If you need help reviewing a co-signing request or want a second opinion, reach out — The Frontline Mortgage Group break down the numbers and the risks so you can make a fully informed decision.