Co-Signer Alert: How Parents on Title Can Cost You $4,000+

This couple are first-time buyers. Their parents co-signed the mortgage to help them qualify.

Now they're realizing:

If the co-signers aren't first-time buyers, we might lose the Ontario Land Transfer Tax rebate.

And they're right to be concerned.

Here's how the Land Transfer Tax rebate works in Ontario:

To qualify for the FIRST-TIME buyer rebate (up to $4,000):

• YOU must be a first-time buyer
• AND anyone else on title must ALSO be a first-time buyer

If your parents are on the mortgage for qualification purposes but will also be on TITLE (as joint tenants), they disqualify you from the rebate.

The fix:

Talk to your lawyer and lender about structuring this so:

• Parents are co-signers on the MORTGAGE (for income qualification)
• But NOT on TITLE (they don't have ownership interest)

This way, you keep your first-time buyer rebate.

But here's the real issue:

If your parents need to be on title because the lender requires it, you're in a tougher spot.

Some lenders allow co-signers without title; others don't.

This is a conversation that should have happened during PRE-APPROVAL, not at conditional approval.

What first-time buyers need to know:

Co-signers can help you qualify. But they come with trade-offs:

• Potential loss of rebates
• Your parents' credit is tied to this mortgage
• Family dynamics if something goes wrong

Always, always, always discuss co-signer implications with your mortgage agent AND lawyer BEFORE you go firm.

Thinking about using a co-signer?

Let's structure this properly from the start so you don't lose thousands in rebates.

Got other questions? You can book your free 15 MIN. MEETING call - no pressure, no sales pitch.

BOOK MY FREE CONSULTATION

Just clarity.

Have a blessed week ahead!

Talk soon,

Fred Camingal