Co-Signing a Mortgage Isn’t Like Splitting a Pizza

Thinking of co-signing a mortgage?
Here’s my “pizza analogy” to break it down.

When four people split a pizza, each gets 25%.
But when four people co-sign a mortgage, each person is responsible for 100% of the debt not just their "slice."

Co-signing a mortgage is a big deal, and while it’s often done out of love or generosity, it’s important to understand exactly what you're signing up for.

Let’s dive into what being a co-signer really means and what you need to know before saying yes.

What Is a Co-Signer?

A co-signer is someone who helps another person qualify for a mortgage by adding their income and credit history to the application. This can be the tipping point for getting approved, especially if the primary borrower is just shy of qualifying on their own.

But here’s the catch: as a co-signer, you're not just helping on paper. You’re legally responsible for the entire mortgage if things go sideways.

You’re Fully On the Hook

If the primary borrower misses a payment, defaults, or simply stops communicating with the lender—you are 100% liable for the mortgage.

You don’t own the home. You don’t live there.
But if the mortgage isn’t paid? The lender comes to you.

It Impacts YOUR Borrowing Power

Even if you’re not making the mortgage payments, the loan shows up on your credit report as your debt.

That means the next time you apply for financing—whether it’s a car loan, another mortgage, or a line of credit—lenders count that co-signed mortgage against you.
It can lower your borrowing power, or even cause you to be declined.

Missed Payments = Credit Damage

If payments are late or missed, your credit score can take a serious hit even if you didn’t know it was happening.

The borrower might not tell you they’re struggling. You might not find out until it’s too late.

And in many cases, you won’t get any warning.

Ask Yourself This Before Co-Signing:

✅ Do I fully trust this person to make payments on time, every time?

✅ Could I afford to cover the mortgage if I needed to step in?

✅ Am I okay delaying my own home purchase or financing plans?

✅ What’s my exit strategy? How and when will I be removed from the mortgage?

Getting Off a Co-Signed Mortgage Isn’t Easy

Removing yourself as a co-signer requires the borrower to refinance or otherwise qualify on their own. That’s often harder than it sounds especially if their finances haven’t significantly improved.

And here’s a Canadian twist that many people don’t know:

Most lenders in Canada only require one signature to renew a mortgage.

That means the loan could be renewed without your knowledge or consent but you’re still on the hook.

You could be tied to a brand-new mortgage term you didn’t agree to, with no warning and no way out.

Final Thoughts

Co-signing a mortgage is a generous gesture.
It can help a family member or friend achieve their dream of homeownership but it’s not without risk.

Before you sign anything, take a moment to really assess the situation. If you’re unsure, have questions, or just want a second opinion, I’m here to help.

Let’s chat and make sure it’s the right move for you.