By Farhana S. Nurani, Barrister & Solicitor, Associate
It is not unusual for a family member to co-sign or guarantee a mortgage. However, there is a difference between co-signing a mortgage and guaranteeing one. For this topic, we will be focusing on co-signing a mortgage loan. Typically, where a parent has co-signed a mortgage for a child, it is not the intention of the parent to move into the property or be responsible for the property, payment of the mortgage or to benefit from the equity when the property is sold. However, whether the co-signer is a family member or a non-family member, a co-signer is an equal partner with the other borrower(s) on the mortgage. A co-signer signs mortgage documents, is registered on title and is responsible for the payments on the mortgage. However, there is often an understanding that the co-signer will not be making the payments. Before agreeing to a co-sign a mortgage or have someone co-sign a mortgage for you, here are a few things to consider: