When you first bought your home, you might have needed a co-signer — someone who helped you qualify by strengthening your mortgage application.
But what if removing your co-signer could lower your payments and reduce your interest costs?
Removing a co-signer could be one of the smartest financial moves you make — giving both you and your co-signer greater financial freedom.
Why You Might Want to Remove a Co-Signer
- Lower Mortgage Payments
Without a co-signer, your lender may reassess your terms and reduce your payments. - Potential Interest Savings
A restructured loan could lead to better rates, reducing your long-term interest costs. - Pay Off Your Mortgage Sooner
A shorter amortization period can reduce overall costs significantly. - Full Control Over Your Mortgage
Take full control—refinance, renew, or renegotiate without a second signature.
How to Remove a Co-Signer From Your Mortgage
Removing a co-signer starts with refinancing your mortgage. This means applying for a new mortgage in the names of the remaining parties — and showing that you can handle the mortgage on your own.
If you can afford the mortgage without your co-signer, the process moves forward. This could even mean a fresh start with a new lender, interest rate, and payment structure. At this point, the co-signer is officially removed from the title.
Before you move ahead, though, it’s always a good idea to get independent legal advice to make sure everything’s in order.
Is Now the Right Time?
Deciding when to remove a co-signer isn’t just about checking off boxes — it’s about making sure the timing aligns with your financial goals. Here are a few signs that now could be the right time:
- Your Financial Situation Has Improved
You’re earning more, carrying less debt, and your credit score is looking good. If you can handle the mortgage on your own, it might be time to take full ownership. - Interest Rates Have Dropped
If rates are lower than when you first bought your home, refinancing could mean smaller monthly payments — especially if your credit has improved. - Your Co-Signer’s Financial Needs Have Changed
Maybe they want to free up borrowing room or simply step away from the mortgage. Removing them benefits both of you. - You’ve Outgrown the Co-Signer Relationship
If you’ve been in your home for a while and feel confident managing things on your own, it might be time to make the move and stand on your own financial feet.
If removing your co-signer feels like the right move, it’s worth finding out what’s possible based on your current situation.
Want to know if you’d qualify on your own — or what it could save you? Let’s take a look together. You can book an appointment with Paul here or reach out directly at [email protected].
About the Author
Paul Hudson is an award-winning mortgage broker with over 20 years of experience helping homebuyers in British Columbia secure the right mortgage for their dream home.
When he’s not helping clients smart mortgage decisions, Paul is an avid snowboarder and plays in a local band in Squamish, bringing the same energy to both the slopes and the stage.
