Car Loan With a Co-Signer in Canada

A co-signer is someone who agrees to be equally responsible for the loan if you fail to make payments.

The ideal co-signer has: a credit score of 660 or higher, stable employment or income, a low debt-to-income ratio (their existing monthly debt payments are a small percentage of their income), and a genuine understanding that they are legally obligated for the debt if you miss payments.

This is the most important conversation to have before asking someone to co-sign. The loan will appear on the co-signer's credit report as an active debt.It counts against their debt-to-income ratio.

A co-signer guarantees the debt but does not share ownership of the vehicle. A co-borrower is a joint owner of both the loan and the vehicle.

For most family car loan situations, co-signing is more appropriate. Your Easy Ride Canada advisor will walk you through the options.

Yes — typically through refinancing. After 12–24 months of on-time payments, your credit may have improved enough to refinance the loan in your name alone, releasing the co-signer from the obligation.

Easy Ride Canada can assist with refinancing when you reach that point.

Adding a co-signer to your Easy Ride Canada application is straightforward — your advisor will collect information from both parties. We work with co-signer applications in Vancouver, Surrey, Kelowna, Victoria, Kamloops, and everywhere in BC.