# When are guarantors/co-signors important and what is required?

> Guarantors and co-signors can substantially fortify a mortgage application, especially when the borrower has a limited credit history or is self-employed.

Category: Purchasing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/purchasing/when-are-guarantorsco-signors-important-and-what-is-required

## Answer
Guarantors and co-signors can substantially fortify a mortgage application, especially when the borrower has a limited credit history or is self-employed. FRFIs, however, are obligated to conduct a rigorous credit assessment of the guarantor/co-signor. This is a partnership where everyone's financial health matters.

## Institutional highlights
- Lenders will carefully check the credit of anyone who guarantees your mortgage.
- The more the lender relies on your guarantor, the more thorough the credit check will be.
- Your guarantor needs to fully understand the legal responsibilities they're taking on.
- Having a guarantor might help your mortgage qualify as a standard residential loan in some cases.
- Typically, acceptable guarantors are banks, financial institutions, or insurance companies.

## Related guide
- https://ratellow.com/guides/self-employed-success-purchasing

## Sources
- Guarantors and co-signors of mortgages — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.3.2
- I. Purpose and scope of the guideline — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#1.0
- Contents — https://www.sagen.ca/ups/underwriting-documentation/#documentation