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    HomeAnswersHow does a co-signer affect a loan in Canada?
    Loans

    How does a co-signer affect a loan in Canada?

    Quick answer

    How does a co-signer affect a loan in Canada?

    A co-signer is equally responsible for the debt. Their stronger credit or income can get you approved or lower your rate, but every missed payment also damages their credit.
    • The loan appears on both credit reports and counts toward both people's debt ratios.
    • Lenders can pursue the co-signer for the full balance if you stop paying.
    • Removing a co-signer usually requires refinancing in your name alone.

    Only ask someone to co-sign if you have a realistic plan to make every payment.

    Related Questions

    How does a co-signer affect a loan in Canada?

    A co-signer is equally responsible for the debt. Their stronger credit or income can get you approved or lower your rate, but every missed payment also damages their credit.

    Keep reading

    • Can I pay off a personal loan early in Canada?
    • What credit score do I need for a personal loan in Canada?
    • How much mortgage can I afford in Canada?
    • Is a fixed or variable mortgage better in Canada right now?

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