In today’s high-rate, high-price real estate market, many Canadians are struggling to qualify for the mortgages they need—even with solid incomes and a reasonable down payment.

With mortgage qualifying rates now sitting around 6.29% (based on the contract rate plus the mandatory 2% stress test), buying a home has never been more financially challenging.

As a result, more and more homebuyers—especially first-timers—are turning to parents, siblings or close friends for help in the form of a co-signer. If you’ve been asked to co-sign a mortgage or you’re considering asking someone to do this for you, it’s essential to understand what co-signing really means—and what’s at stake.

Co-signing comes with full responsibility

When someone co-signs a mortgage, they’re not simply vouching for the borrower. They are legally committing to the full debt and all the obligations that come with it. If the primary borrower fails to make payments—whether due to job loss, illness, divorce or any other life event—the lender........

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