Can You Use a Co-Signer as a New Home Buyer in Canada?
Yes. If you're having trouble getting approved for a mortgage — or you want to borrow more than you qualify for on your own — you can bring in a co-signer. Usually that's a parent or another family member who agrees to back your application. We'll walk through how it works and what other moves you can consider.
How Down Payments Work in Canada
Your down payment is the chunk of cash you put toward the home upfront. It comes off the purchase price, so the rest is what you finance with your mortgage. The bigger your down payment, the faster you'll own the place outright, the less interest you'll pay over the years, and the more expensive a home you can reach for.
Canada's Down Payment Rules
For homes priced at $500,000 or below, the minimum down payment is 5%.
For properties between $500,000 and $999,999, it's 5% on the first $500,000 and 10% on anything above that.
Properties priced at $1 million and above require a 20% down payment.
What If You Can't Put Down 20%?
Mortgage insurance can add a lot to what you pay — anywhere from 0.6% to 4.5% of your mortgage amount, depending on how much you put down. If you roll that premium into your mortgage instead of paying it upfront, you'll pay interest on it too. So putting down 20% to skip insurance altogether is worth aiming for.
Other Ways to Get There
Wait and save more for your down payment — just keep in mind that home prices move around.
Adjust what you're looking for. Maybe a condo or townhouse instead of a detached house, or a neighbourhood that's a bit more affordable.
Ask family for help, either as a gift or a loan.
Get someone to co-sign your mortgage.
Use your Registered Retirement Savings Plan through the Home Buyers' Plan (a program that lets you borrow from your RRSP to buy a home).
Look into the First Time-Home Buyer Incentive, the Home Buyers' Tax Credit, or the new FHSA that launched in 2023.
How Mortgage Co-Signing Works
If you're young, single, or self-employed, getting approved can be harder. If that's you — or if you just want to borrow more — you can ask a family member (often a parent) to co-sign. They're vouching for you: their income and credit help you qualify, but they don't own any part of the home.
Co-Signing vs. Co-Borrowing: What's the Difference?
A co-signer backs your mortgage without owning the property. A co-borrower is both an owner and a borrower — they're on title and on the hook for payments. Spouses usually co-borrow, but parents sometimes do too when they're buying with an adult child.
Is Buying a Home with a Close Friend a Good Idea?
Some first-time buyers think about co-owning with friends or family. Pooling your money can let you borrow more. But you need to think through what happens if one of you wants to sell and the other doesn't, or if someone hits a rough patch financially. It's not a sitcom setup, and it's not for everyone. If you're considering it, talk to a financial expert and a lawyer first.
Finding Your Path to Homeownership
There's no single playbook right now. Lots of people are mixing tools — FHSAs, the First Time-Home Buyer Incentive, co-signers — to make it work. Whether you bring someone in to help or go it alone, holding your first set of keys is a pretty great feeling.
If you have any questions at all please reach out and I would be more than happy to assist.
Creating happy homeowners by providing personal bespoke mortgages solutions with uncompromising service.
Matt Broom-Hall Mortgage Broker & Happiness Creator [sayhello@hellomortgage.ca](mailto:sayhello@hellomortgage.ca)
