Buying your first home in Woodstock or Oxford County is exciting, but qualifying for a mortgage can be tricky. If your income falls short, having a parent help is a great option—but guarantors and co-borrowers are not the same!
What is a Mortgage Guarantor?
A guarantor guarantees repayment if you default, but usually stays off property title. You remain the sole owner. However, not all lenders allow a guarantor's income to boost your qualification—they often only back credit or job stability.
What is a Mortgage Co-Borrower?
A co-borrower applies with you, combining incomes to boost buying power. Because they share full liability, lenders almost always require them to be on title.
Key Things to Consider:
Tax & Legal: Adding a parent to title can impact Ontario Land Transfer Tax refunds, capital gains tax, and estate plans.
Their Finances: A helper’s existing debts count against qualification capacity.
Exit Strategy: Plan early for when and how to remove them from the mortgage.
Build the Right Team
Before signing, talk to a local team:
Mortgage Agent (Alida Riddell) to structure the right loan.
Realtor to guide your search.
Real Estate Lawyer to protect your ownership rights.
Have questions about buying in Oxford County? Reach out to Alida Riddell today to explore your best path to homeownership!