Wondering: “Should I use a cosigner for my mortgage?” It’s a big decision that deserves thought. Here are the pros and cons.
Sometimes, having a cosigner for your mortgage can open the door to homeownership when your finances or employment history fall just short of qualifying. But bringing someone, usually a parent, into your mortgage application is about more than just numbers. It’s also about responsibility, risk, and relationships.
Watch my video or read on to find out if this is the right decision for you!
Should I Get a Mortgage Cosigner?
There are some situations where a cosigner is a smart solution.
For example, if you’re recently self-employed and don’t have two full years of income history, or if your overtime income hasn’t been consistent long enough to count, a cosigner might help bridge that gap. In these cases, the cosigner usually joins the mortgage for a year or two until you can stand on your own financially.
Does a Mortgage Cosigner Signal a Bigger Issue?
If you simply can’t afford the home without a cosigner for your mortgage, it might be time to hit pause. While a parent may be willing to help, entering a mortgage you can’t sustain on your own could create future financial stress, or even strain familial relationships.
Remember, if you can’t make your payments, your cosigner will be legally responsible for them.
What to Consider Before Getting a Cosigner
Adding a someone to your mortgage means sharing liability and, ideally, ownership too. That’s why your cosigner should also be on the property’s title. But before asking someone to sign on, have a frank discussion about expectations, backup plans, and the possibility of future financial changes.
A cosigner can be a helpful tool, but only in the right circumstances. It’s not a shortcut to affordability, it’s a temporary boost when your financial picture is almost there.
If you’re looking to get pre-approved for a mortgage to buy a property in Edmonton, fill out my online application. I’m here to help you every step of the way.
About Jason Scott, Edmonton Mortgage Broker
Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’ll be your trusted partner who will help you get the right mortgage for your family home or Investment property. I’m Jason Scott, and I’ll be your Mortgage Broker in Edmonton.
