Thank you to our partners at First National for a breakdown on the difference between the two.
- What is the difference between a Guarantor and a Co-signer?
- Guarantors are not on title to the property but will provide a guarantee to ensure the mortgage debt is being paid by signing the mortgage commitment and the mortgage charge as a guarantor. The guarantor should be able to contribute to servicing the mortgage debt if called upon.
- Co-signers will be on title to the property and will provide a guarantee to ensure the mortgage debt is being paid by signing the mortgage commitment, the mortgage charge and any other documents that would normally be signed by a borrower on title to a property. The co-signer should be able to contribute to servicing the mortgage debt if called upon. Co-signers are normally required when the main applicants have poor credit and income.
- Insured and Insurable Mortgages
- Must be immediate family members – father, mother, child, brother, sister, grandparent, legal guardian or legal dependent, spouse or common law partner.
- Does not need to occupy the property.
- Conventional, Uninsurable Mortgages
- Guarantor must be a spouse or common law partner.
- Must be occupying the property.
These are general guidelines and there may be more to the borrower’s application. Each application is different and may be subject to further adjudication and conditions. At Primex, we will double check to make sure you qualify.
Have any questions or are looking for mortgage assistance? Contact us today at 604-552-6190 or email us at support@primexmortgages.com
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Trish & The Primex Team