Applying with a Co-Applicant
Applying for a mortgage with a co-applicant can increase your borrowing power and improve your chances of approval. Whether you're buying a home with a partner, family member, or friend, here's what you need to know about co-applicants when using Perch.
What is a co-applicant?
A co-applicant is someone who applies for a mortgage with you. Their income, credit score, debts, and assets are factored into your mortgage application alongside yours. This can help you qualify for a higher purchase price or better terms.
What are the benefits of applying with a co-applicant?
Increased borrowing power: Two incomes can support a larger mortgage amount.
Stronger application: If one applicant has a lower credit score, the other may help offset it.
Shared responsibility: Both applicants are jointly responsible for the mortgage, which can make homeownership more manageable.
Can a co-applicant be left off the property title?
In most cases, if someone is a co-applicant on the mortgage, they will also be listed on the property title. However, there are some exceptions:
A co-signer (someone who guarantees the loan but doesn’t occupy the property) may not be added to the title.
Some lenders may allow exceptions based on the relationship between applicants or ownership structure.
Your Perch advisor can help determine what’s possible in your specific situation.
Do both applicants need to complete a profile?
Yes. If you’re applying with a co-applicant, both of you will need to create Perch accounts and complete your profiles. This includes uploading income documents, ID, and other required information.
Can I apply with a co-applicant who lives in a different province?
Yes. Co-applicants do not need to live at the same address or in the same province. The application process is entirely digital, so you can complete it together from anywhere in Canada.
Can I apply with a co-applicant who isn’t a spouse or partner?
Absolutely. You can apply with a family member, friend, or anyone else who is willing to co-borrow and share responsibility for the mortgage. Just keep in mind that both parties will be financially and legally tied to the loan.
Can my co-applicant be self-employed?
Yes. Self-employed co-applicants are welcome, though they may need to provide additional documentation like tax returns, NOAs, or business financials.
In short: applying with a co-applicant can open more doors and improve your chances of qualifying. If you have unique questions about your co-applicant situation, your Perch advisor is here to help.
Can I add a co-applicant after I am pre-approved?
Yes, you can add a co-applicant after receiving your pre-approval—but it requires support from your advisor. Adding or removing a co-applicant affects your pre-approval amount, so it triggers a re-calculation of your borrowing capacity.
For that reason, this change cannot be made directly through the app. Instead, please contact your advisor, who can review your updated application and make the necessary adjustments.
Tip: If you anticipate needing to add a co-applicant, it’s best to do so before submitting your application to avoid delays.