Co-Signing a Mortgage in Canada: Pros, Cons & What to Expect

Thinking about co-signing a mortgage? On the surface, it might seem like a simple way to help someone you care about achieve homeownership. But before you sign on the dotted line, it’s important to understand exactly what co-signing means—for them and for you.

You’re Fully Responsible

When you co-sign, your name is on the mortgage—and that makes you just as responsible as the primary borrower. If payments are missed, the lender won’t only go after them; they’ll come after you too. Missed payments or default can damage your credit score and put your financial health at risk.

That’s why trust is key. If you’re going to co-sign, make sure you have a clear picture of the borrower’s ability to manage payments—and consider monitoring the account to protect yourself.

You’re Committed Until They Can Stand Alone

Co-signing isn’t temporary by default. Even once the initial mortgage term ends, you won’t automatically be removed. The borrower has to re-qualify on their own, and only then can your name be taken off. If they don’t qualify, you stay on the mortgage for another term.

Before agreeing, talk openly about expectations: How long might you be on the mortgage? What’s the plan for eventually removing you? Having these conversations upfront prevents surprises later.

It Affects Your Own Borrowing Power

When lenders calculate your debt service ratios, the co-signed mortgage counts as your debt—even if you never make a payment on it. This could reduce how much you’re able to borrow in the future, whether it’s for your own home, an investment property, or even refinancing.

If you see another mortgage in your future, you’ll want to consider how co-signing could limit your options.

The Upside: Helping Someone Get Ahead

On the positive side, co-signing can be life-changing for the borrower. You could be helping a family member or friend buy their first home, start building equity, or take an important step forward financially. If handled with clear expectations and trust, it can be a meaningful way to support someone you care about.

The Bottom Line

Co-signing a mortgage comes with both risks and rewards. It’s not a decision to take lightly, but with careful planning, transparency, and professional advice, it can be done responsibly.

If you’re considering co-signing—or want to explore safer alternatives—let’s connect. I’d be happy to walk you through what to expect and help you decide if it’s the right move for you.

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Tanya Toye

Mortgage Broker

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Deposit vs. Down Payment: Key Differences for Homebuyers

By Tanya Toye • September 23, 2026

When you’re buying a home, two terms often cause confusion: deposit and down payment . While they’re related, they serve very different purposes in the homebuying process. Here’s what you need to know. What Is a Deposit? A deposit is the money you provide when you make an offer on a property. Think of it as a show of good faith that proves you’re serious about purchasing. How it works : Typically, you provide a certified cheque or bank draft that your real estate brokerage holds in trust. If your offer is accepted, the deposit remains in trust until the deal moves forward. If negotiations fall through, the deposit is refunded. Connection to your down payment : Once the sale is finalized, your deposit becomes part of your total down payment. Why it matters : The amount is negotiable, but a larger deposit can make your offer more attractive in a competitive market. Keep in mind, however, that if you back out after conditions are removed, you risk losing your deposit. What Is a Down Payment? Your down payment is the amount you contribute toward the purchase price of your home when securing a mortgage. Minimum requirement : In Canada, the minimum down payment is 5% of the home’s purchase price. Anything less than 20% requires mortgage default insurance. Sources : Down payments can come from your savings, the sale of another property, RRSP withdrawals (through the Home Buyers’ Plan), a gift from family, or even borrowed funds. Example: How They Work Together Imagine you’re buying a $400,000 home with a 10% down payment ($40,000). When you make your offer, you provide a $10,000 deposit . Once conditions are met, that deposit is transferred to your lawyer’s trust account. At closing, you add the remaining $30,000 to complete your full down payment. The lender provides the rest—$360,000—through your mortgage. The Bottom Line Your deposit shows commitment and secures your offer, while your down payment is what makes the mortgage possible. Together, they work hand in hand to get you into your new home. 📞 If you’d like clarity on deposits, down payments, or any other part of the mortgage process, let’s connect. I’d be happy to walk you through it step by step.

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Self-Employed? Let’s Get You Qualified for a Mortgage

By Tanya Toye • September 16, 2026

Being self-employed comes with plenty of advantages, including the ability to structure your business how you choose and claim expenses to reduce your taxable income. But, when it comes time to apply for a mortgage, those same tax strategies can sometimes make qualifying more complicated. One of the first considerations is how your business is structured. There can be differences in how lenders assess income for someone who is incorporated compared with someone who operates as a sole proprietor or partnership. Depending on the lender and the circumstances, income may be reviewed using personal tax returns, corporate financial statements or a combination of documents. Another important factor is the level of business write-offs you claim. As a business owner, reducing your taxable income can make good financial sense. However, a lower reported income can also mean a lower qualifying income when a lender assesses your mortgage application. This can create a frustrating situation where you may have strong cashflow and the ability to comfortably afford the mortgage, but your tax returns don’t necessarily tell the whole story. That doesn’t automatically mean you need to start declaring significantly more income and paying substantially more to the CRA just so you can qualify for a mortgage. Alternative mortgage solutions may be a great option Depending on your circumstances, there may be alternative mortgage solutions available that take a broader view of your financial situation. Some lenders have different approaches to self-employed income and may be able to consider additional documentation or alternate methods of demonstrating your ability to repay the mortgage. This can create an important financial decision for self-employed borrowers. Is it more beneficial to pay additional taxes to show a higher income or consider a mortgage option with a higher interest rate that may allow you to qualify based on your existing financial structure? There isn’t a one-size-fits-all answer. The right approach depends on your income, business structure, financial goals, credit profile, down payment and how long you expect to be in that mortgage. The key is to have the conversation before you make changes to how you report your income. A mortgage broker who understands self-employed borrowers can help you explore your options and compare the potential costs of different approaches. Instead of assuming you need to change the way you run your business to qualify for a mortgage, it may be worth looking at the lending solutions available to you first. Being self-employed shouldn’t automatically make getting a mortgage more difficult. It just means your mortgage strategy may need to be as individual as your business. Let’s discuss your options. 604-788-8693 | tanya@tanyatoye.ca