Jan 27, 2026
Every so often a caller brings a scenario to The Ramsey Show hosts that stops them in their tracks.
That’s what happened when Jeremy, a 22-year-old college student, phoned in with a plan he thought might help him skip renting and jump straight into homeownership (1).
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Jeremy is finishing school with no student debt, has US$50,000 (C$68,000) saved and just accepted a full-time job with US$65,000 (C$89,000) salary, a US$10,000 (C$14,000) stipend and a free company car.
By most measures, he’s starting his adult life on strong financial footing. But Jeremy admitted he was afraid of renting — partly because he grew up hearing that rent is a “waste of money” — and that trepidation appears to have pushed him toward a risky workaround.
As Jeremy explained to hosts George Kamel and Ken Coleman, he’s considering having his girlfriend’s mother cosign the mortgage on his first home. The plan stunned the hosts.
“OK, Jeremy, this entire call you have sounded like somebody who’s way ahead of the game and on top of it, and then you just threw the ultimate curveball,” said Coleman. “You’re considering buying a house with your girlfriend’s mom?”
Why the plan raised major red flags
Jeremy’s logic hinges on two notions: He could avoid renting, and he wasn't sure he’d qualify for a home loan on his own. However, his solution was to lean on his girlfriend’s mother — someone he isn’t related to, legally committed to or financially tied to.
Kamel immediately flagged the most obvious issue: relationship change.
“You’re going to call us in a year saying ‘I sunk all of my money into buying a house with my girlfriend’s mom and we just broke up. What do I do?’” said Kamel. “Do you see where this is going? It’s going to get messy real quick.”
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The hosts pointed out that the arrangement could easily lead to disputes over ownership, pressure from different family members or a situation where one party wants to sell while the other refuses. They emphasized that renting for a year or two isn’t a sign of financial failure — especially for someone starting a new career in an unfamiliar city while still figuring out whether the relationship will lead to marriage.
Kamel and Coleman delivered their bluntest criticism. They said asking a girlfriend to cosign would be unwise, but roping in her mother was “next-level stupid.”
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Get StartedWhy cosigning a home isn’t straightforward
On paper, cosigning can look like a simple favour that helps someone get into the housing market. In reality, it creates serious financial and legal risk for both parties.
A cosigner becomes responsible as a joint debtor for the mortgage if the primary borrower can’t or won’t pay. Late payments affect the cosigner’s credit. Missed payments trigger collections. And if things go very wrong, foreclosure appears on both credit histories. A divorce, breakup, job loss or relocation doesn’t change the loan agreement — the bank still expects payment (2).
It’s also easy to misunderstand who owns what. Cosigners share liability, not necessarily ownership. Unless their name is also added to the title, they have no legal rights to the property, even though their credit is on the line. That dynamic becomes particularly volatile when relationships end or family dynamics shift (3).
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In some cases, lenders may allow a guarantor instead — someone who promises to take over if the borrower defaults doesn't carry the day-to-day liability. However, not all lenders offer guarantor structures, and many prefer standard cosigning because it’s simpler for underwriting and risk (4).
When cosigning might make sense
There are rare cases when cosigning can be appropriate. For example, parents sometimes cosign for adult children who have stable income but lack credit history when they're early in their careers. Even then, experts stress that both parties should exhaust every alternative first (5).
Before anyone cosigns, they should sit down with the other party to discuss:
- Exit plans: What happens if one person wants out, moves or ends the relationship?
- Payment responsibilities: Who pays what? Who covers repairs and emergencies?
- Ownership rights: Will the cosigner also be on the title, or are they liable without control?
- Timelines: Is the borrower committing to refinancing the mortgage in their own name after a year or two?
It’s smart to put agreements in writing, even within families. A simple agreement can outline payment structure, contingencies and procedures if one party decides they want to sell.
But as the hosts emphasized to Jeremy, cosigning should be avoided in most cases — especially when the relationship is still young and the borrower is financially capable of renting and saving independently. Renting for a year or two and building a larger down payment may not feel as exciting as jumping straight into ownership. But it protects both finances and relationships in the long run.
Read more: The ultra-rich are bailing on volatile stocks right now — these 4 shockproof assets are their new safe havens
Bottom line
Homes bind people to a mortgage — but also to each other. Cosigning can strain relationships and credit reports alike, especially when the parties aren’t married or financially joined.
Before involving others in backing a home loan, consider whether renting, saving or delaying the purchase while you save more for a larger down payment could give you more control and fewer entanglements down the road.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Youtube (1); Mortgage Expert (2); Legal Inquirer (3); Equifax (4); Mortgagerates.ca (5)
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Chris Clark is freelance contributor with Money.ca, based in Kansas City, Mo. He has written for numerous publications and spent 18 years as a reporter and editor with The Associated Press.
