Hello All,

Can an unemployed person be a cosigner for a Mortgage if he is receiving EI and there is a RRSP which canbe used as a first home buyer.

Any comments appreciated.

Thanks
Dkp9a

EI income will not be considered by a lender as a source of stable income since EI payments are there only for a limited duration. Similarly, there are certain conditions for you to enable withdraw money from your RRSP towards the down payment of your home.

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Rajeev Narula, Broker, REALTOR®
ACE TEAM REALTY INC., Brokerage
10 Kingsbridge Garden Circle, Suite 704
(Opp Square One - HWY10/403)
Mississauga, ON L5R 3K6
Bus: 1-888-355-3155 Ext. 300
Fax: 1-888-443-3155
Email:
Web: http://www.RAJEEV.ca" rel="nofollow">LINK

You're right , EI is not considered income for the Mortgage approval,
I only want to use the RRSP amount of the person who is on EI for the down payment as a First home buyer which would only be possible if the person is a cosigner, otherwise that person had to make a withdrawal from RRSP by paying some taxes and had to give me the money as gift, which I dont' want.

Hope this clarifies my situation, & what I am looking for.
Thanks
Dkp9a

You cannot just have anyone withdraw the money for RRSP to buy your first home. The other person has to be your spouse or common law partner. The only exception is if you are buying the property for disabled related person. Also, there is a difference between co-signer of the mortgage and the person on the title of the property as it is not necessary for the co-signee to be on the title. Co-signer can also be a guarantor assuring payment of mortgage in case of a default.

For more information on the Home Buyer Plan, please refer to the following link..
http://www.cra-arc.gc.ca/tax/individuals/topics/rrsp/hbp/conditions/menu-e.html

-----------------------------------------------------------------
Rajeev Narula, Broker, REALTOR®
ACE TEAM REALTY INC., Brokerage
10 Kingsbridge Garden Circle, Suite 704
(Opp Square One - HWY10/403)
Mississauga, ON L5R 3K6
Bus: 1-888-355-3155 Ext. 300
Fax: 1-888-443-3155
Email:
Web: http://www.RAJEEV.ca" rel="nofollow">LINK