Overview
- A new Bank of Canada analysis finds about 11% of first‑time mortgages now include a parent as co‑signer, up from about 4% in 2004.
- With a parent on the loan, the average maximum home price rose to about $787,000 from $458,000, a 72% lift, and 74% of these buyers would not have qualified on their own.
- Co‑signing is most common in high‑cost cities, reaching close to 14% of first‑time mortgages in Toronto and Vancouver, with Montreal showing the sharpest increase over time.
- Buyers who used more of the extra borrowing room were more likely to become delinquent later on credit cards or lines of credit, signaling higher financial stress.
- About one‑third of co‑signing parents already carry a mortgage, and they are legally responsible for payments if their children cannot, since lenders count the parents’ income and hold them on the hook.