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Cosigning for a mortgage in Ottawa is becoming more and more popular and there are may reasons why one needs a cosigner.
A cosigner may be needed when an applicant:
A cosigner can be an immediate family member, such as a mother or father, brother or sister. Also, grandparents can assist.
Before cosigning for a mortgage, it is important to consider all the factors involved from personal to financial. Also, what happens when things go good and when things go bad.
Having an exit strategy is always a good idea so that the cosigner and applicant know exactly when the cosigner will not be needed anymore.
A mortgage calculator will help give the cosigner a rough idea of what the mortgage payment will be. That way you can see if you are comfortable with this payment if the applicant cannot fulfil their payment responsibilities.
If the applicant is not able to make the mortgage payment, the cosigner will be responsible so it will be good to know if you can afford to make the payments if the applicant cannot.
Learn more: Mortgage Payment Calculator
The debt you are cosigning for will show up on your credit report. This will affect your ability to borrow in the future so if you have any major purchases coming up and it will be important to take that into consideration when cosigning.
If everything comes together properly, cosigning for a mortgage can be a wonderful way to help a family member get started with home ownership or get a fresh start after a life challenge.
Learn more: Cosigning for a Mortgage on YouTube
Andrew Thake is a seasoned mortgage broker with over 15 years of industry experience. He’s assisted more than 2,200 clients in finding their ideal mortgage solutions. Recognized for his excellence, Andrew has received high honours and awards, including the National Rookie of the Year from TD Canada Trust and recognition as a Top 10 Ottawa Mortgage Broker in 2023. He has also been inducted into the Hall of Fame at Dominion Lending Centres and has consistently received their Platinum Award during his tenure as a mortgage broker.
Andrew’s dedication lies in serving his clients and prioritizing their needs with an empathetic approach. Throughout the application process, he provides tailored, informed, and efficient services to ensure the best mortgage solutions for his client’s unique circumstances. The best part of Andrew’s job is when he gets to see the joy on his clients’ faces following their mortgage approval.
