How a co-signer can help qualify for a new mortgage !🤗

More and more buyers are needing help from a co-signer, even the most seasoned borrower may require a help from a co-signer due to the strict changes governing authorities have implemented.  

What is a co-signer?  When buying a house a co-signer is an additional applicant that would likely not be living in the property but would be providing additional security for the main applicant(s).  They would be put on the mortgage and also on title of the property.  

Does a cosigner have to stay on the mortgage for the entire term, ie if the term is 5 years can the cosigner come off before the 5 years is up?

    -The cosigner can come off the mortgage and title of the property as soon as the applicant is able to qualify on their own.  The mortgage would be re-registered in the main applicant(s) name(s) with the lender's approval.

Here are some common reasons that an applicant would need a cosigner:    

    -newly employed and not yet full time

    -new to self employment 

    -self employed and write off most of income so has low taxable income

    -credit issues, low credit score or not enough credit

Here are some unique reasons a cosigner is needed:

    -has recent mortgage arrears or late payments

    -recently discharged from bankruptcy and have not established  2 years new credit

    -recently separated or divorced and has new support payable

    -has no employment but a large down payment

    -works in another country and is paid offshore income but is Canadian citizen

    -waiting to sell property but has a purchase closing and doesn't qualify to carry both mortgages 

There are many reasons that a cosigner can be used.  Since Bank of Canada adjusted the qualifying rate (stress test) more and more borrowers who would have qualified at the contract rate no longer do.

If you have been told you don't qualify and you have an immediate family member who would be willing to co-sign, let's look at options.  We are here to help you reach your goal of home ownership.  Often it is just a matter of finding the right path to reach the goals.  

Reach out today and let us review your options and help you set a goal for Home Ownership.

                                                                    

Whether you are a First Time buyer or you are a seasoned home buyer looking to sell property and buy something else, I would love to help.  Our pre approval application takes 5-10 minutes and will give me the basic information I need to get started on helping you set your home ownership goals.

https://harmonymortgage.ca/application-form/