Should you co-sign for your kids?

Should you co-sign for your kids? | MoneySense

Before you put your John Hancock on that mortgage form, make sure you truly understand your child’s financial situation.

If you’re a parent of a young adult whose home ownership dreams have been dashed, there is a way to help. In June, the maximum amortization period for insured mortgages was reduced from 30 to 25 years, making it even more difficult to manage monthly payments. But having a parent co-sign on the dotted line allows adult children with lower salaries to get into the housing market. It’s a trend that mortgage broker Scott Dawson expects to increase in response to the new rules. But is it a good idea?

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