For many years, those who chose a variable rate mortgage fared better than those who chose a fixed rate. Interest rates fell year after year and the people on variable rates saved a lot of money. However in a rising and high interest rate environment, those people ran into problems as their interest rates rose higher and higher. 

For most people, a fixed rate is a certain, whereas variable rates means stepping into the unknown. So the answer is.. it depends on your risk appetite. It’s best to talk to a professional and see what suits you.

Equity is the difference between the mortgage balance and the current market value of the home, as estimated by a licensed appraiser or by actual sale.

Both of them are fully responsible for the mortgage payments if for any reason the primary borrower does not make the required payments. However, the co-signer is also on title for the property and the guarantor is not.

It’s getting harder to find lenders who will allow guarantors – they want all parties on title.

The lender would still lend the agreed percentage of the purchase price, or the appraised value, whichever is less.
If that leaves a shortfall you need to have access to additional money.

With interest rates having risen so much, so fast in 2022 lenders now want at least 10% total return on first mortgages (example 7.99% rate and 2% lender fee) and at least 13% for a second mortgage (example 9.99% with a 3% fee)

If the application is strong and there is lots of equity in the property, we have several individual investors who will only charge as low as 6.99% interest even on a second mortgage. And reasonable fees too.